Legal Question in Bankruptcy in Washington

Bankruptcy Before Dissolution/Divorce is Final

What if a spouse declares bankruptcy on a community debt (where both spouses are named as debtors on a loan) before the dissolution/divorce is final? Does the spouse, which is not filing bankruptcy, then assume the payments while the other spouse goes through bankruptcy process? Or, does the automatic stay halt collection on the debt for both debtors listed on the loan document?


Asked on 7/04/99, 12:12 pm

1 Answer from Attorneys
Susan Freiman The Legal Clinic

Re: Bankruptcy Before Dissolution/Divorce is Final

Normally, the bankruptcy of one debtor does not stay collection proceedings against the other debtor. However, the bankrupt may be liable to reimburse the co-debtor, especially if the divorce decree or agreement provides for that.. The non-filing debtor must act immediately to assert a claim against the bankrupt in the bankruptcy proceeding, , and claim that the debt to the non-filing spouse is non-dischargeable.

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Answered on 7/10/99, 12:37 am


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