Divorce and Bankruptcy | LEAP Podcast

by | Jul 25, 2022 | Podcast

Occasionally I will get couples that are seeking a divorce and simultaneously a bankruptcy, or at least thinking of it.

Since I focus solely on family law, I cannot necessarily help them with the bankruptcy portion, but I am more than willing to find out who their bankruptcy attorney is and, if they don’t have one, help them find one.

The number one question I get from those seeking bankruptcy and divorce is ‘if I get a settlement agreement in my divorce when the other spouse is responsible for the debt, will they leave me alone if my spouse opts not to pay?’ The answer is no. You are not off the hook.

A divorce settlement agreement isn’t binding on a 3rd party like a creditor. Technically, debt that was incurred during a marriage is a joint responsibility. They can come after both individuals.

If you have concerns about filing for divorce and bankruptcy at the same time, don’t hesitate to reach out. I can refer you to an attorney I trust, and we can coordinate with one another to work on the best resolution for you.

Show Transcript

In this video, I’m going to talk about divorce in Florida and bankruptcy. Hi, everybody. I’m A.J. Grossman, divorce lawyer, and owner of Leap Frog Divorce.

So some of my clients have come to me seeking a divorce and almost simultaneously either going through bankruptcy, or they’re thinking about bankruptcy. And they really want to know how a bankruptcy will impact their divorce or how a divorce will impact their bankruptcy.

So, for the last decade, actually longer than a decade, I have focused my practice solely on family law, divorces and paternity. I don’t do immigration. I don’t do criminal law. I don’t do personal injury, and I don’t do bankruptcy. So when I get a client who is either thinking about bankruptcy or is going through a bankruptcy, I either find out who their bankruptcy attorney is, or I connect them with a bankruptcy attorney because there are some very important considerations between a divorce and bankruptcy.

And the number one question I get from my clients is if I get a settlement agreement in my divorce, does that makes my spouse responsible for certain credit card debt? If they don’t pay, will the credit card company go after them and leave me out of it? Am I off the hook if my divorce settlement agreement makes them responsible for those credit card debts? The long answer is no. And the short answer is no. You will not be off the hook.

And why is that? Because a divorce settlement agreement is not binding on a third party like a creditor, like the credit card company that issued you the credit card. So if during your marriage that you guys put debt on that credit card, technically you’re jointly responsible and what we call severally responsible for that debt. So what that means is that credit card companies can come after both of you or either one of you individually, and they’re not going to care what your divorce settlement says. So if you have those concerns, you might consider meeting with a bankruptcy attorney.

Of course, if you are in a position where you’re thinking about bankruptcy anyway, and you don’t have a bankruptcy attorney, I can refer you to some wonderful bankruptcy attorneys I know. And we will work together, me as your divorce lawyer and that other attorney as your bankruptcy attorney will coordinate and work together to create the best strategy for your divorce involving both a divorce and bankruptcy.

So I hope this video was helpful. If it was, please like and subscribe. I’m releasing new videos all the time. Thank you so much for watching. Have a wonderful day and be well.

Arthur J. Grossman J.D., LL.M., Esq

Arthur J. Grossman J.D., LL.M., Esq

AJ Grossman graduated at the top of his Florida law school class, has been trained in Collaborative Divorce, has a Master of Laws degree in Dispute Resolution, and is a Barrister member of the invite-only Central Florida Family Law Inn of Court. His aggressive advocacy on behalf of his clients provides hope and reassurance throughout challenging divorces.


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