What Can You Do if Your Spouse Files for Bankruptcy?

104 7

    Special Notice

    • Become involved in your spouse's bankruptcy, particularly if you are estranged or separated. Make sure you request special notice of the bankruptcy. This involves simply filing a document with the bankruptcy court, requesting that you be sent any and all filings in the bankruptcy case. Special notice permits you to be apprised of all occurrences in the case, which you may otherwise be unaware.

    Relief from the Automatic Stay

    • Upon the filing of a bankruptcy, an automatic injunction or, the "Automatic Stay," goes into effect. This stay prevents the majority of legal proceedings against the debtor. Should you wish to obtain a divorce from your spouse and to seek spousal support, you should seek relief from the automatic stay. To do so, you must file a motion with the bankruptcy court. It is fairly routine to seek relief from the stay in cases when a spouse wishes to proceed with a divorce. You may wish to consult an attorney regarding filing the motion.

    Attend the 341 Meeting of Creditors

    • Every debtor is required to appear at the 341 Meeting of Creditors. During this meeting, the bankruptcy trustee will question the debtor regarding his assets, debts, and his bankruptcy documents. Any person may attend the meeting and ask the debtor questions. Thus, you may question the debtor regarding any matter related to his financial affairs. It is particularly important to ask the debtor regarding any debts of which you are jointly liable. You may wish to consult an attorney regarding relevant questions to ask at the 341 Meeting of Creditors.

    File for Bankruptcy

    • If your spouse receives a bankruptcy discharge and there is substantial joint debt, you may wish to file your own bankruptcy to protect your assets. Joint debt may be in the form of a credit card in both your name and your spouse's name or a joint mortgage. Although you may not wish to file for bankruptcy, it may be your only option if your spouse receives his discharge. It is very important to retain an attorney to file your bankruptcy case, as bankruptcy can be a complex process.

Source...
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.