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tiedandtwisted

Junior Member
What is the name of your state (only U.S. law)? New Jersey
I live in PA and the ex lives in NJ with the children. Originally an amicable situation turned ugly beyond belief. Part of the Property Settlement stated the profit of the house sale would pay off the bills. Well there will not be enough to payoff the bills, so now how do I handle this? How can I ensure if I send her money that she will pay her half and send it to the bill collector? Is there a better way? Is there some sort of verbiage I should try to get her to agree to? Should I ask for her cancelled checks (what if she wont give them to me)? How do i prevent further damage to my credit?
Do I just file bankruptcy?
 


mistoffolees

Senior Member
What is the name of your state (only U.S. law)? New Jersey
I live in PA and the ex lives in NJ with the children. Originally an amicable situation turned ugly beyond belief. Part of the Property Settlement stated the profit of the house sale would pay off the bills. Well there will not be enough to payoff the bills, so now how do I handle this? How can I ensure if I send her money that she will pay her half and send it to the bill collector? Is there a better way? Is there some sort of verbiage I should try to get her to agree to? Should I ask for her cancelled checks (what if she wont give them to me)? How do i prevent further damage to my credit?
Do I just file bankruptcy?
You're going to need more details.

What is the exact wording of the section saying that the profit on the house sale would pay off the bills?

Are the bills in your name (or both of your names)? If so, you can get a copy of the payment info from the creditor.

And how much are the bills and the profit?
 

LdiJ

Senior Member
You're going to need more details.

What is the exact wording of the section saying that the profit on the house sale would pay off the bills?

Are the bills in your name (or both of your names)? If so, you can get a copy of the payment info from the creditor.

And how much are the bills and the profit?
That's a critical question. Better advice can be given if we know the extent of the issue and maybe even what kind of financial resources you have.
 

tiedandtwisted

Junior Member
What is stated

The Property Settlement agreement states:
"At the closing of the marital home and the mortgage and closing costs are paid, the parties agree to pay off the debts as listed under the debt section of this agreement, with all remaining proceeds being equally divide between both parties."

Written well before the real estate market crashing. Now there will be a shortfall.
The debt is in excess of 20k, profit from the sale of the home will be approximately 10k.

Credit accounts are in both names.
 

LdiJ

Senior Member
The Property Settlement agreement states:
"At the closing of the marital home and the mortgage and closing costs are paid, the parties agree to pay off the debts as listed under the debt section of this agreement, with all remaining proceeds being equally divide between both parties."

Written well before the real estate market crashing. Now there will be a shortfall.
The debt is in excess of 20k, profit from the sale of the home will be approximately 10k.

Credit accounts are in both names.
So all of the credit accounts are joint? None of them are in just one name or the other?

If that is the case, then one possible method would be to divide the accounts in a manner where you each take full responsibility for certain accounts, rather than one having to send money to the other.

Or, you can choose which one of you is most likely to protect your mutual credit scores the best, and have that person take responsibility and the other make payments to them.

Another possibility would be to have each of you tap retirement accounts (if you both have them) for 1/2 of the shortfall. However that is more expensive as it could have tax consequences.

Or an alternative would be for each of you to refinance 1/2 of the debt into your own names.

There are options, it does not have to become incredibly ugly.
 

mistoffolees

Senior Member
The Property Settlement agreement states:
"At the closing of the marital home and the mortgage and closing costs are paid, the parties agree to pay off the debts as listed under the debt section of this agreement, with all remaining proceeds being equally divide between both parties."

Written well before the real estate market crashing. Now there will be a shortfall.
The debt is in excess of 20k, profit from the sale of the home will be approximately 10k.

Credit accounts are in both names.
Then legally, all of the equity from the home sale needs to be used to pay off the debt. If the other party does not cooperate, you can file for contempt.

As for the rest of the debt, you're each going to owe half and Ldij has already listed a few options on how to resolve it.
 

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