Credit Card Debt Divorce
The End Might Be The Beginning
You thought it was over. Your divorce decree is final, your 30 days have expired, and you are well on your way to enjoying the good life. You were even able to rid yourself of a lot of credit card debt by having the court to award the debt to your now former spouse.
Unfortunately, today you received a letter in the mail from a collection agency demanding payment for the credit card debt which your former spouse was ordered to pay. What happened? How can it be that you are being threatened with a lawsuit? When is over not over?
A Rare Case Of Wanting Debt
Telling you that you are not alone does not help. However, the truth of the matter is this is an all too frequent occurrence. That is why it is hardly ever a good idea to have the credit card debt awarded to your spouse if you have any reason to believe your spouse is irresponsible or for whatever reason will not pay the debt. You should have the settlement or award structured so that you receive sufficient assets to pay the debt and have the debt awarded to you.
The Legal State Of Debt
The reason is credit card debt is governed by federal law. This means that if you are responsible on the credit card debt, they were joint accounts or you live in a community property state, then the divorce court cannot alter your contractual relationship between you and the credit card company. Although the debt was awarded to your spouse, you remain liable if your spouse does not pay. This is true even if your spouse files bankruptcy and has the debt discharged. Unless an application is filed to have your obligation also discharged, which a former spouse is unlikely to do, you remain liable on the debt and the credit card company is without a doubt coming after you.
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