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Marital debts will not vanish because of a divorce. The creditor can still make attempts to collect from you despite the statement in the divorce decree that your ex will keep you harmless from creditors.
Property division in divorce means the division of property. Often, the party, who is not liable for a different debt, gets an upside down home in exchange for it. Each party is supposed to pay the debts allocated to them and keep the other party harmless from them. In a county court, this order is enforceable as a ‘Contempt Action’. It can provide remedies like attorney’s fees, court fines and even imprisonment, but it can’t provide the removal of your name from that debt. Thus, the creditor can make attempts of collecting from you in case your ex ceases to pay since your name still exists on the debt. To remove your name from the debt, you can either refinance the collateral or get your personal liability removed by bankrupting on the debt.
After the possession of the house by the ex-spouse, they often lack sufficient income for refinancing, as they don’t have sufficient income for making payments on their own. This often leads them on the verge of foreclosure or bankruptcy, sometimes without informing the other party. Many debtors remain unaware of their ex-spouse’s non-payment until the house lands in serious arrears. In such a case, the debtor can sue the ex-spouse for contempt.
The risk of liability persists for a long time, as home mortgages are often extended for as long as thirty years. In such cases, if, after a divorce, a house is left unpaid for decades, it can still benefit from the credit of the innocent ex. Under such circumstances, full payment of the note or the payment in bankruptcy is the only way of avoiding foreclosure.
You can schedule a meeting with the best bankruptcy attorneys of Los Angeles & Dallas, TX, for expert guidance and consultation on bankruptcy-related matters. Contact the Recovery Law Group at www.staging.recoverylawgroup.com or call on 888-297-6203.