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St Louis Bankruptcy Lawyer: What Happens To Joint Debt I Owe With My Ex-Spouse In A Bankruptcy?

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It depends on a couple of factors: 1) did the divorce court judge order that you had to pay the debt? 2) which chapter of St Louis bankruptcy are going to file? A brief description of how these factors play out is provided below:

Let’s assume for this example that the debt in question is a credit card that you and your ex-spouse jointly owned. If the divorce court judge ordered as part of the divorce decree that you pay the joint debt, then the bankruptcy court will not discharge that particular debt in a St Louis Chapter 7 bankruptcy. The main reason for this rule is because the bankruptcy court would consider to joint credit card to be in the nature of “support” and therefore non-dischargeable.

However, if you were to file a St Louis Chapter 13, then you could take advantage of the so-called “super discharge” that comes with such a filing. The super-discharge of a Ch13 will in fact get rid of the joint debt.

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A Chapter 13 is described as a repayment plan between three (3) and five (5) years in length during which certain debts are paid back. These debts to be paid back would include: mortgage arrearage (i.e. the amount you have fallen behind on your mortgage payments); car notes (but paid back at an interest rate of 4.75%, which is often quite lower than what a lot of people are currently paying in interest); tax debt; back child support; and sometimes a portion of your unsecured debts.

At the end of the repayment plan, whatever unsecured debts remain (such as credit cards, debit cards, payday loans, etc.) are knocked out (much like a Chapter 7 would do).

But the easiest way to understand what your rights are is to make an appointment to come see us! We will answer all your questions, thoroughly describe your full range of options, and help guide you through the process from start to finish!

The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.