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 inter...