When you go through a Massachusetts divorce, it can be both financially as well as emotionally painful. Moreover, if your former spouse suddenly files for bankruptcy, things can be even more stressful for you as there is a possibility that your financial stability can get greatly affected. Divorce, as well as bankruptcy, may have a great impact on your financial position in various ways based on the new circumstances of your ex-spouse.
Check out some of the important things that you can consider while going through a bankruptcy and a divorce.
Cosigned or joint credit liabilities
When your former spouse files for bankruptcy, the responsibility for any debt falls on you in case you are a cosigner or a joint owner. The lender may hold you accountable as a cosigner or a joint owner to pay for a loan when your ex-spouse declares that he/ she is bankrupt and is unable to make the due payment.
Though it is unfortunate but the creditors are least concerned about the statements mentioned in your divorce agreement. So, your liability to pay the debt still exists when your former spouse fails to make the payment. A divorce payment does not remove your accountability to pay; it only indicates that you can compel someone else to do so. So you should be ready to pay the debt in case your former husband or wife is discharged from the need to pay off the loan or stops paying due to the bankruptcy. In such a scenario, you should immediately get in touch with your divorce lawyer and discuss what legal options are available for you.
Child support and alimony
Expenses for child support and alimony should be paid prior to paying the other creditors as well as taxes. However, though your alimony cannot be discharged, it does not mean that you will continue receiving the same amount if your former spouse files for a modification.
Impact on your credit report
Though your ex-spouse filed for bankruptcy, your credit score may not get affected directly. The reason for this is because your credit score is considered to be distinct and separate from your former spouse.
To learn more about the divorce process in Massachusetts contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.