Legal Question in Bankruptcy in Indiana

Marriage Settlement Not Acknowledged

My divorce was finalized on September 30, 2008 and in the divorce we separated a debt for a car that had gotten repossessed. My ex-wife and I split the bill 50/50, but while we were waiting for our divorce to finalize the debt had gone to a collection agency. They contacted us separately and had set up a payment plan with her for $50 a month and $75 from me but it was still in both our names, jointly. Shortly thereafter I received a bill for the entire car in only my name for the full $8,000 plus expenses totaling $11,000, with no mention of my ex-wife. After contacting her, she had gotten the same kind of bill but with only her name and the amount, but she plans on just making her $50 payments and then she is going to file for bankruptcy. Also, I had contacted them to inform them of the divorce papers and that the bill was supposed to be separated and they told me they did not acknowledge the divorce degree because they were a third party. How should I handle this and will her bankruptcy effect me in any way? Like leaving the total amount in my name?

Asked on 12/17/08, 4:23 am

1 Answer from Attorneys

Gregory Coleman Coleman Law Office

Re: Marriage Settlement Not Acknowledged

The collection company does not acknowledge the divorce decree order. Was the debt in both names? If so, they will go after both of you.

Should one party file for bankruptcy, the creditor will go after the other party for the remaining amount. The creditor can accelerate payments or collection on the account even if you are making payments. The two of you can try to settle the debt with the creditor in hopes for a resolution. Should only one party file for bankruptcy, the other party may be able to file something with the county court who handled the divorce for not paying the debt. However, once bankruptcy is filed, the creditor can no longer collect from you. Once bankrupcty is filed you receive immediate protection from the court on collections.

Go to our website should you want more information on bankruptcy and how it works.

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Answered on 12/17/08, 7:06 am

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