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The problems encountered when filing Chapter 7 bankruptcy while a
divorce case is pending are more common than most people would hope to
admit. After separation, but before a divorce is finalized, one person
may file Chapter 7 without consulting their present spouse.
Complications arise because of joint liability for debts of the
marriage.
Filing only discharges debts for the debtor in Chapter 7, and does
not affect liability for any person who does not file, and does not
affect the rights of creditors to pursue collection against anyone who
does not file. As a result, although one spouse discharges liability,
all joint debts of the marriage remain valid against the non-filing
spouse. Divorce decrees that divide liability have now effect upon
creditors who where not a party to the divorce.
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