Will I Lose My Car When The Ex Files For Bankruptcy?

Divorce not only leaves a bad taste in the mouth for both parties but it also complicates the two individual’s financial state in more ways than one. In fact, the painful part of the divorce litigation, aside from the battle on who will get custody of the children (if they are still minors and we all know who the courts usually favor on that end), is the determination of who gets what in the once conjugal properties that were being shared by the former marital couple. And a lot of things that were not originally considered financial and ownership issues now form a part of the division process.

But this whole scenario enters a different and a more complicated level when the ex files for bankruptcy and the first thing that comes to mind is will the other party lose some of his properties that he or she is still paying for when the other party files for bankruptcy? But first off to understand the entire process better, we need to know what bankruptcy is. The term bankruptcy refers to a legal process or method of getting rid of debts and providing means for debt-ridden individuals to obtain a fresh start in life. Now let us try to understand the other legal and financial implications of bankruptcy to both parties of a divorce. http://www.nocreditcheckcarloans.co.uk/will-i-lose-my-car-when-my-ex-files-bankruptcy.

The question always arises on the issue of the extent of the powers of bankruptcy on exclusion from debts and payments formerly shared by both people when they were still legally bound by marriage. For example, if both you and your ex are contractually bound on a debt, the creditor can, by all means, require the entire payment of that debt from your share of the community property. The other former spouse may or may not be liable for the debts incurred before the marriage and the decision depends on which state the formerly married couple lived but generally the answer would be no. In the light of this setup, no, you do not lose your car when your ex files for bankruptcy and you have to continue paying what is left of the finance agreeement. http://www.nocreditcheckcarloans.co.uk/Bad_Credit_Car_Finance_an_Introduction.html

Now if you are the one who filed for bankruptcy, you will have the option to either keep the car loan or give up the car altogether, and if you qualify for Chapter 7 bankruptcy, then all your debts, not including student loans and tax debts though, are all wiped out.

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