Property Settlement/Bankruptcy

[jdenn47]

Hello,

I just received the proposed property settlement agreement from my spouse. I am planning to file BK shortly and she knows it. Before I signed this thing, there are a couple of things that concern me.

The agreement says that I will continue to pay all debts in my name and that she will continue to pay all in her name.

There's a clause that confuses me though. It says "In the event that either party shall declare bankruptcy, then the assignment of debts herein shall be considered to be in the nature of support."

How would this even apply if we are each taking the debts in our name? The only item that I co-signed for is her Vehicle (Balance due of about $1300.)

Is this lawyer trying to pull some sort of fast one?

Thanks,
John

[lrprn]

John, this requires a real legal interpretation from a bankruptcy lawyer in your area who is familiar with what's happened in the past to other filers in similar financial and divorce circumstances to yours.

Set up several free initial consultations with 3-4 bankruptcy lawyers in your area and put this situation first on your question list. Good luck - keep us posted about what you find out.

[EveryDayAdam]

I would also talk to an attorney that specializes in seperation agreements.

Are you in a state where debts taken on by a spouse are automatically the responsibility of your spouse? If that's the case, then it's possible that if you file for BK, then your creditors can go after your spouse, even though her name is not on the accounts. If they do, then it sounds like you are agreeing to pay your spouse the debt payments as a form of post-marital support...which isn't dischargeable in BK. So, if you are in one of those states, and you file for BK, you may end up being on the hook for those payments if the creditors go after your spouse.

I can't say for sure...definitely talk to an attorney.