Divorce and Bankruptcy?

Question

My husband and I are starting the process to file a chapter 13 bankruptcy. The majority of the debt is from him buying a ridiculously expensive car without my consent when we first married. My name is not on the car loan. I've pretty upset and fed up. I am considering at least separating from him while this is going on. Is it better that I wait until the bankruptcy is final, or should I do it now? I don't want to ask our lawyer because I don't want to make this worse than it already is.

Answer 1

Chapter 13 is just a structured repayment plan so you will still be paying the money to your creditors. Adding divorce to the bills seems silly. All debts will still be from when they occurred.

Answer 2

I would file for the divorce first then let him file for the bankruptcy. He is the sole owner of the car and that's what got you there (probably not the only thing) but this way, he will be awarded the car and you will be awarded the "shared" money he put into the car.

Still not sure, definitly speak to your lawyer, they can advise you much better since they will have all your information unlike us.

Answer 3

Divorce as a financial tool?  Okay.  If your marriage is so screwed up that you would ask this question, I'd say do it now, get it over with.  

You'll still have to share the debt, by the way.  The other drawback is the extra legal fees involved in the divorce, but you're probably going to do that anyway, so it makes no difference.

Answer 4

Any asset or debt incurred during the marriage is community property and thus both of you are liable.  Even if you separate or divorce him, the creditor will seek payment against both of you.  Sorry.

Answer 5

Doesn't matter if your name is on the loan or not, you share the debt load incurred in the marriage.  Seperation doesn't mean anything in legal terms, you're either married or divorced.  Now that you've started the process for the bankruptcy, anything you do to try and seperate yourself from the debt will be viewed as fraudulent action by the bankruptcy trustee.  

You're already fixing the money issue with the court filing, ride it out and then work on your relationship.  Money is the number one reason for all divorces, it's a stressor for sure, give it some space and see how it goes after all the dust settles.