What is the name of your state? Illinois
A couple bought my business from me 2 years ago. Both spouses signed personally and individually. Almost immediately they divorced and the wife remarried. In the divorce decree, the husband held the wife harmless for this debt(obviously, this does not affect me). Now both former spouses are filing for bankruptcy. The husbands will likely go through. The wife's will not (total fraud). We reopened the case after it was closed and caught her. Now, it's only a matter of a month or so until I can start collection against her. My question is: Does the hold harmless clause in the divorce survive the ex husbands bankruptcy? I have read case law that it does, and doesn't. I think I can get more money from the wife, if she is able to collect from her ex. Or she might be easier to collect from.
A couple bought my business from me 2 years ago. Both spouses signed personally and individually. Almost immediately they divorced and the wife remarried. In the divorce decree, the husband held the wife harmless for this debt(obviously, this does not affect me). Now both former spouses are filing for bankruptcy. The husbands will likely go through. The wife's will not (total fraud). We reopened the case after it was closed and caught her. Now, it's only a matter of a month or so until I can start collection against her. My question is: Does the hold harmless clause in the divorce survive the ex husbands bankruptcy? I have read case law that it does, and doesn't. I think I can get more money from the wife, if she is able to collect from her ex. Or she might be easier to collect from.