Short answer:
If you get divorced while under debt review, your financial circumstances and repayment arrangement may need to be reassessed. This is particularly important if you and your spouse applied jointly or were married in community of property. Divorce does not automatically end debt review or cancel outstanding debts. Contact your debt counsellor as soon as possible to discuss the changes and determine what steps are required.
Will My Debt Review Plan Change After Divorce?
Your existing repayment arrangement may no longer reflect your circumstances after a divorce, especially if your household income, living expenses or responsibility for debts changes.
Your debt counsellor may need to reassess your finances and prepare a revised repayment proposal. Depending on your marital regime, the stage of your debt review and any existing court or consent order, further legal steps may be necessary.
Am I Still Responsible for Joint Debts After Divorce?
You may remain liable for joint credit agreements even if your divorce settlement states that your former spouse must pay them. A divorce order does not automatically release you from obligations to a credit provider. You should confirm whether the credit provider has formally released you from any joint agreement.
What Should I Do If I Get Divorced While Under Debt Review?
Inform Debt Rescue promptly and provide updated financial information and relevant divorce documents. Do not assume your repayment arrangement has changed automatically or stop making payments without guidance.
Need help understanding your options? Contact Debt Rescue for a free, no-obligation assessment.