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What happens to my community debts in a Chapter 7 case if I am divorced?

Community debt refers to debt owed jointly by two spouses or ex-spouses. Divorce effectively releases the debtor from his or her half of the community debt but the debt itself is not erased from the perspective of the creditor. The result of the debtor but not the debt being forgiven is that the debtor’s half of the debt burden gets transferred to the ex-spouse, who then becomes liable for the full amount of the debt. If you are in the process of obtaining a divorce when you or your ex-spouse files for bankruptcy, it is best to consult both a bankruptcy attorney and a family lawyer.

To find out more information about what you need to do to complete a Chapter 7 bankruptcy in Minnesota, please contact an experienced Minneapolis Chapter 7 bankruptcy lawyer at (952) 388-2942 or (800) 619-8991 and please read our FREE book: What You Need to Know About Filing Bankruptcy in Minnesota.

Barry Rosenzweig
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Barry Rosenzweig, has 25 years experience as an attorney helping clients solve their legal problems.