If separated and one spouse files bankruptcy, is the other still responsible for that spouse's debt?
Full Question:
My husband and I are thinking of signing a separation agreement. We do not understand the part of the agreement on bankruptcy (see below). Our question actually is as follows: if after signing the separation agreement one of the parties files for bankruptcy, is the other party still held liable by the court for the debts that the bankrupt party made?
01/31/2007 |
Category: Bankruptcy |
State: ALL |
#1396
Answer:
To the extent of any obligation contained herein is discharged in bankruptcy and the non-bankrupt party is held liable for said debt, the non-bankrupt party shall have the right to petition a court of competent jurisdiction for spousal support in an amount sufficient to cover any amounts so discharged.
Liability is possible. If one spouse files for bankruptcy and the other does not, and spouses are jointly liable on a debt, the spouse that did not file for bankruptcy can be held liable for the debt.
