KELLER LAW OFFICE
Thomas M. Keller, Attorney at Law Sara M. Vansco, Paralegal
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JOINT DEBTS AFTER DIVORCE
In the course of a divorce, the parties or the judge often decide which one is supposed to pay which debt. However, just because the other side is supposed to pay a debt, and the Court orders him or her to pay that debt, it doesn’t mean that the creditor is going to remove your name from the account. The divorce court has no authority to order credit card companies or Ford Motor Credit to do anything. Because these issues arise so often, we wanted to send you this information so you can protect yourself as best you can, and make the best decision about how to handle your credit. Please remember:
1. A divorce has no effect on a creditor’s right to collect its debt from me.
2. A creditor does not have to release me from an existing joint obligation, just because I am getting divorced.
3. I should obtain a credit report to see the debts listed in my name before filing divorce.
4. I should call each creditor shown in my report to discuss my pending divorce and to attempt to establish a separate account for myself, transferring my share of the balance of the joint account to a new separate account, and closing the joint account.
5. If a creditor refuses to “break” the joint account into separate accounts, then I should send by certified mail, return receipt requested, a notice to the creditor at the address provided in the credit report, noting that I will not be responsible for any new charges made to the account after a specific date. I should keep a copy of this letter and of the return post card acknowledging receipt, to defend myself from any later attempt to collect the debt from me.
6. I should continue to make at least the monthly minimum payments on joint accounts while the divorce is pending.
7. If necessary, I should consult a reputable debt-counseling agency such as LSS/Consumer Credit Counseling, to work on budgeting for my new single status, and to create a repayment plan with creditors.
8. That sale of a residence or other major assets, and pay-off of a joint obligation, may be the best way to terminate a major joint obligation.
9. That bankruptcy is a remedy to consider before the divorce, if it is apparent that neither I, nor my spouse, will be able to maintain two separate households and service our existing joint debts through a repayment plan.
We are here to help manage your marital debts along with the remaining issues of the divorce. Please let us know of any specific questions you have.