Indemnity
My wife and I are in the process of seperating. I am the primary cardholder on 5 credit cards and cannot make the payments. The seperation agreement has a clause whereby I am to indemnify my exwife if the credit card companies come after her for the debts. I have spoken to a Trustee to discuss my situation but still do not understand if by going bankrupt I can still be sued by her for the debts that I have gone bankrupt for.
2) would if she was a secondary card holder
Thank you
This issue confuses a fair number of people, I will try to state it clearly for you.
The Family Court that handles separation and divorces can issue an Order that says one of the spouses will assume certain debts and that is enforceable in Family Court.
BUT the Family Court does not have the right to tell a creditor that they may no longer pursue someone that is jointly responsible for a debt.
So, John and Mary have a joint debt with Big Bank for $20,000.
John and Mary go to Family Court and the judge issues an Order that John has to repay the entire debt.
John files bankruptcy. Big Bank has the right to contact Mary to repay the debt.
Mary’s only recourse against John is to return to Family Court and ask the judge to impose additional payments on John to Mary. You’ll have to talk to your family lawyer to determine whether or not this will work…