If one spouse files for bankruptcy, what happens to any joint credit card debts?
The distribution of credit card debts is a primary issue that arises in the majority of divorce cases. I always suggest that all credit card debts be paid off from the marital assets before any monies are distributed. It is always advisable to pay off all of the marital debt before the divorce is put through before the court. It is always important to emphasize that post-judgment issues always arise. It is extremely important for a divorcing couple to tie up as many loose ends as possible. If there is a sale of a marital home, then I always advise that the credit cards should be paid off at the closing. The closing attorney can send out checks to the credit card companies at the closing table. Moreover, in many cases, a good family court lawyer can assist their client to negotiate a settlement of the credit card debt(s). Many credit card companies will accept 60% settlement of the debt if it is paid in one lump sum. However, before any credit card debt is settled, a person must always
