Debt is one of the leading factors that leads to divorce.  So it’s no wonder a huge concern for married couples considering breaking up is what happens to debt in divorce in California?   

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What Happens to Debt in Divorce in California?

In a California divorce, the debt is usually assigned to one person, so let’s explore further how you need to protect yourself if you are in debt and getting divorced in California.  The two predominant kinds of household debt are credit card debt and student loan debt.  There are many options for consumers to get out of credit card debt and student loan debt such as debt consolidation, hardship programs, bankruptcy for credit card debt and student loan rehabilitation programs for those with federal student loans.  The benefits of debt settlements for eliminating your credit card debt and private student loan debt usually outweigh other options.  However, there is no one answer for all.  Each debt and divorce story is different for each couple’s unique situation.

what happens to debt in a divorce in california


Dividing Debt in a California Divorce

The California Courts website has some good basic information about dividing debt in a California divorce.  The essential point is that in a divorce proceeding, the debt is usually assigned to one person.  While the court can order one person to be responsible for the debt, the creditors will still look to both people in the marriage to receive payment.  So your best bet is to resolve the debt issue quickly.   Otherwise when the creditors go after both of you, and your ex will be brought back in your life as well.  If there is one thing most people agree on with divorce, when you are ready to move on – you are ready to move on!


Debt Settlement for Dividing Debt in a California Divorce

Debt settlement for dividing debt in a California divorce is a viable option for the person in the divorce who gets stuck with the debt.  This is especially true for those with credit card debt or private student loan debt.  A debt settlement is a negotiation made between you (the borrower) and the creditor (credit card company or student loan servicer) that you will pay back an often greatly reduced amount of the debt that you owe in one lump sum or in a payment plan over time.  If you are already in default and missing payments on your debt, then the creditor would rather negotiate a deal that you will pay back a portion of the debt then spend money taking you to court to get the full amount.  They would also rather get some funds from you then have you declare bankruptcy and receive nothing.  Furthermore, the creditors can use the loss of your account to offset their profits through creative bookkeeping.  Be sure to read my client debt relief success stories to see how debt settlement has helped them get out of debt.


Debt Relief Options for Divorce in California

It’s important to know that you do have debt relief options for divorce in California.  If you are facing divorce, of course you should protect yourself by hiring a divorce attorney. However, when it comes to your debt issues in your divorce, it’s best to consult with a debt relief attorney so that you can maximize your chances of getting out of debt.  My debt relief law firm is committed to finding solutions to your debt problems.  We are in the business of getting our clients out of debt and saving our clients’ money.  Be aware of debt relief “companies”, as they are not held to the same legal and ethical standards in which attorneys are held.  I offer a free debt consultation to go over your debt relief issues, so give me a call at 858-217-5051, email me or submit an inquiry to my Ask a Debt Question Page.


Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!