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?
- Category: Bankruptcy
- Date:
- State: National
Answer:
If one spouse files for bankruptcy, the other spouse may still be liable for debts they share. If the bankrupt party's obligations are discharged in bankruptcy and the non-bankrupt party is held responsible for those debts, they can petition the court for spousal support to cover the discharged amounts. This means liability is possible if both spouses are jointly responsible for a debt.
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