
Credit Card Debt in Texas

Typically, in Texas both spouses are liable for joint credit card debt accumulated during a marriage, regardless of whether both names are on an account. Any credit card debt that was incurred before you got married will most likely be your sole responsibility after divorce. Texas law is quite nuanced, and a judge may determine who owes what debts by reviewing the purpose of the debt, when it was incurred and who incurred it.
If you have overwhelming credit card debt, filing bankruptcy in Texas can help eliminate it or significantly reduce the amount you have to repay. Your best bet is to file a joint bankruptcy with your spouse before filing for divorce. All individual and shared credit card debt can be wiped out in Chapter 7 bankruptcy or restructured into a three- to five-year repayment plan if you decide to file Chapter 13 bankruptcy it will be either wiped out or greatly reduced, depending on your income. Which type you file will depend on several different factors, including your income, the total amount of debts owed and your ability to repay your debts.
If you’re concerned about your spouse racking up credit card debt before your divorce, talk to a Dallas bankruptcy attorney about how you can minimize the amount for which you may be responsible.
Responsibility for Auto Loans

If you are able to make payments and you and your spouse agree on who’s keeping which vehicle, one way to avoid problems is to approach the lender and ask them if you can refinance it on your own. If you’re already behind on payments you can file a Chapter 13 on your own to allow you to get caught up on the payments while also protecting it from repossession. If you co-signed on your spouse’s vehicle you can file either a Chapter 7 or a Chapter 13 on your own which will allow you to surrender your interest in that vehicle and get rid of the liability should that spouse not make timely payments.
Mortgage Debt and Foreclosure

Sorting out these complex issues while ensuring your interests are protected is paramount to safeguarding your financial future. Regardless of whether your ex-spouse has filed bankruptcy or if you’re considering it yourself, talking to an experienced Texas bankruptcy lawyer can help you understand how debt issues may impact your credit score and financial stability.
What If My Ex Doesn’t Pay Debts Assigned to Them After Divorce?

Even if your ex files for bankruptcy after divorce, creditors can still come after you for certain debts. It can be tempting to ignore these issues to avoid dealing with your ex. However, if you fail to pay debts for which you are liable, your credit score will drop and most likely continue to plummet.
Depending on the circumstances, a creditor may file a judgment against you, garnish your wages or try to collect the debt through other methods. For example, you and your ex are cosigners on a car loan that your former spouse agreed to pay after divorce. You drive the car to and from work every day, but your former spouse hasn’t made a payment in months. One day you step out the door and notice that your car is gone. It hasn’t been stolen — the lienholder has decided to repossess the car for nonpayment.
How Can Filing Bankruptcy in Texas Help?

Chapter 7 bankruptcy can completely wipe out unsecured debt such as credit cards and medical bills and help you start over with a clean financial slate. Chapter 13 lets you reorganize your secured debts (like home and car loans) and pay them back over a period of three to five years. It can also eliminate a portion of or all of your unsecured debts. However, not all debts can be discharged in bankruptcy. Some examples of non-dischargeable debts in Texas include:
- Student loans
- Child support and alimony
- Some tax debts
- Fines, restitution and court fees for criminal acts
- Judgments for personal injury damages from a DWI accident
- Retirement account loans
- Debts related to fraud
Ways to Prevent Your Credit Score From Dropping After Divorce

- Check your credit report frequently
- Dispute any errors with credit reporting agencies
- Read and keep monthly statements for any loans or credit cards
- Keep your mailing address up to date with all creditors
- Use credit cards wisely
Contact a Texas Bankruptcy Attorney to Learn More
