Relationship break-up is one of the most common reasons why people end up filing for bankruptcy, and it is easy to put your personal finances on the back-burner while coping with the stress of losing your partner in life. The problem is, that bills still keep coming due, and your creditors are not very sympathetic and understanding when your finances (and life in general) are in flux.
Separating Your Finances with Minnesota Bankruptcy
Thankfully, filing a bankruptcy can be the key tool to set you free, and separate your finances from another person once and for all. Suppose you signed a joint rental agreement for one year with your significant other, but then 3 months after moving in, you break up and one of the parties has to move out. Because both parties signed the rental agreement, BOTH can be pursued for unpaid rent even if one party is no longer living there. You may make an informal agreement with who should pay what, but at the end of the day, the creditors can pursue whomever signed a contract with them for a debt.
Co-Signed Debts for Vehicles or Credit Cards in Minnesota
The same thing goes for co-signed debts for vehicles or credit cards. Suppose you co-sign on a vehicle payment with your ex, trying to help out because they have poor credit, but for whatever reason they later stop making the monthly payments. This will report negatively on your credit, unless either you make the payments, or you file a bankruptcy and discharge your liability for the loan.
Using a Bankruptcy Discharge in Minnesota
This is where a bankruptcy discharge can be most beneficial, as it removes your personal liability for debts you no longer wish to keep paying. This can be for an unpaid rental contract, co-signed loans, or a variety of joint debt. Then it is simply up to your ex or co-singer to pay for the vehicle or rent if they want to keep it. Not your problem. Not on your credit report anymore. An experienced bankruptcy attorney can walk you through your options in dealing with debt with cosigners.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
When the time is right, when you are ready to get your life back, reach out to Minnesota’s largest and nicest bankruptcy law firm, by going now to www.kainscott.com or give me a call at 1-800-551-3292. You will be thankful you did.
