Spousal Debt In A Bankruptcy
Are spousal debts considered in a bankruptcy case?
Spousal debts are considered in a bankruptcy case. However, they can be excluded if the court decides that it would be impractical or cause the overall burden of the chance to grow too large.
All spousal debts are included in the bankruptcy proceedings and are discharged together with the debtor's other debts. If your spouse is being charged with any debt, it is included in the bankruptcy proceedings. There are some exceptions, though, such as medical debts incurred by the sick spouse before filing the petition and spousal support obligations required by a divorce decree or separation agreement.
Spousal Debts
When you file for bankruptcy, your debts are certainly not considered as a whole. Calculating your total debt is done separately but on an individual basis. Regarding spousal debt, what is considered is how much the debt was when it was incurred, where the debt was incurred, and whether or not the creditor has a security interest in your property. The simple answer: if the debt was incurred before marriage, it's yours; if the debt was incurred during the marriage and secured by property owned by either spouse, it's probably yours; otherwise, it's your spouse's problem to deal with.
What is a "spousal" debt? What makes a debt "spousal" is that it involves property that belongs to you and your spouse—the key word here being "belongs." In other words, if you took out a loan on your own and used only assets you had to pay off the loan—no joint assets were used—then the loan would be considered a non-spousal debt because nothing belonging to both of you was used in making the loan payment. Spousal debts are debts that both spouses share, which means they involve joint assets or liabilities.
Bankruptcy Attorney Free Consultation
If you have any questions or in need a Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
https://www.ascentlawfirm.comDisclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
