Legal Question in Real Estate Law in Wisconsin

Marital Debt, Buyout Agreement on Marital Homestead Not Honored by Spouse, Foreclosure, Bankruptcy Options

Failure of a former spouse to honor obligations to pay off marital debt following a divorce are among the most common legal problems which I see in my law practice. Unfortunately, none of the options available to the victimized former spouse are pleasant. One is to bring the offending spouse back to family court for contempt of court due to failure to obey the court order, but this can prove too expensive to be worthwhile and sometimes does not even solve the problem. Even though it may punish the guilty party with jail or other legal sanction, since the creditor was not a party to the marital settlement agreement, it remains free to sue both obligated spouses to recover money owed (or to recover collateral such as the home if the money owed is not paid). The problems of the innocent spouses therefore remain unsolved despite further family court contempt proceedings. However, as with most collection problems, bankruptcies can provide truly meaningful relief for both parties. If the debt on the home exceeds its value, chapter 7 bankruptcies can discharge all unpaid mortgages and other marital debts which creditors may be seeking to collect from the innocent spouse. If the homestead is worth saving, chapter 13 bankruptcies can force the bank to begin accepting payments on the mortgages and freeze the foreclosure suits meanwhile so long as future mortgage payments, homeowners insurance, property taxes, etc. are all kept up. My comments here are not intended as legal advice to you unless you subsequently retain me and allow me to fully investigate your case. I do not have nearly enough information here to seriously advise you now. One specific suggestion which I would have for you or anyone else with financial problems, however, is that you spend a few minutes speaking with a bankruptcy attorney. Most bankruptcy attornies do not charge for their initial conference if do not retain them. Bankruptcy proceedings can sometimes not cost very much more than $1,000.00 in simple cases.

Marital Debt, Buyout Agreement on Marital Homestead Not Honored by Spouse, Foreclosure, Bankruptcy Options

Failure of a former spouse to honor obligations to pay off marital debt following a divorce are among the most common legal problems which I see in my law practice. Unfortunately, none of the options available to the victimized former spouse are pleasant. One is to bring the offending spouse back to family court for contempt of court due to failure to obey the court order, but this can prove too expensive to be worthwhile and sometimes does not even solve the problem. Even though it may punish the guilty party with jail or other legal sanction, since the creditor was not a party to the marital settlement agreement, it remains free to sue both obligated spouses to recover money owed (or to recover collateral such as the home if the money owed is not paid). The problems of the innocent spouses therefore remain unsolved despite further family court contempt proceedings. However, as with most collection problems, bankruptcies can provide truly meaningful relief for both parties. If the debt on the home exceeds its value, chapter 7 bankruptcies can discharge all unpaid mortgages and other marital debts which creditors may be seeking to collect from the innocent spouse. If the homestead is worth saving, chapter 13 bankruptcies can force the bank to begin accepting payments on the mortgages and freeze the foreclosure suits meanwhile so long as future mortgage payments, homeowners insurance, property taxes, etc. are all kept up. My comments here are not intended as legal advice to you unless you subsequently retain me and allow me to fully investigate your case. I do not have nearly enough information here to seriously advise you now. One specific suggestion which I would have for you or anyone else with financial problems, however, is that you spend a few minutes speaking with a bankruptcy attorney. Most bankruptcy attorneys do not charge for their initial conference if do not retain them. Bankruptcy proceedings can sometimes not cost very much more than $1,000.00 in simple cases.