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How Texas Law Regarding Separation Affects Pending Bankruptcy Cases

Texas Law Regarding Separation

According to the Texas law regarding separation, spouses may enter into a legal separation agreement which is binding between the parties. Texas Courts will honor and enforce these agreements, but again, only effective as between the signatory parties, while all other parties, including creditors, remain free to pursue both spouses for collection of community debts.

In bankruptcy practice - the Texas law regarding separation

The Bankruptcy Code allows, but does not require, spouses to file joint petition seeking discharge of debts. Frequently, when spouses are living apart, one spouse files under Chapter 7 or Chapter 13 alone, leaving the other to fend for themselves with creditors. Discharge of debts is only effective for parties who file Chapter 7 or 13, while a spouse who does not file remains fully liable for the payment of all community debts regardless of the breach of a separation agreement.

The Secretary of State for the State of Texas provides corporate information via telephone. This information includes the name, address and contact information for the corporate representative, as well as the date of original incorporation and whether the entity remains active. All bankruptcy cases require a list of creditors, and if the address included within the list of creditors is incorrect, and notice of filing is not delivered, subsequent actions taken by the Bankruptcy Court are ineffective against that creditor. Failure to provide notice is one of the damaging and easily preventable errors made by debtors.

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