How to Handle Unpaid Bills and Collections After Divorce
Divorce is a challenging life event that brings many changes, not just emotionally but financially as well. One of the most frustrating issues that often arise after a divorce is the discovery of unpaid bills or debts that have been sent to collections. Whether it’s a utility bill, a credit card balance, or medical expenses that slipped through the cracks, these unpaid debts can seriously impact your credit score and peace of mind. Understanding how to navigate these financial pitfalls is essential for protecting your financial future and moving forward with confidence.
In this article, I’ll walk you through practical steps to handle unpaid bills and collections after divorce, drawing on real client experiences and professional advice from Tim Blankenship at Divorce661. If you’re facing these challenges, you’re not alone, and there are effective solutions to regain control of your finances.
Why Divorce Agreements Don’t Override Creditor Rules
After a divorce, you might assume that the division of debts in your divorce judgment or settlement agreement means you’re off the hook for certain bills. Unfortunately, that’s not how creditors see it. Even if the court assigns responsibility for a debt to your ex-spouse, creditors will still hold you accountable if your name is on the account.
For instance, if you and your ex shared a joint credit card and the divorce agreement states that your ex will pay off the balance, creditors don’t consider that agreement. If the bill goes unpaid, the creditor will pursue both of you as joint account holders. This is a critical point to understand because it means your credit can be damaged even if you were legally absolved of responsibility in your divorce papers.
That’s why it’s essential to:
- Review your divorce judgment or settlement agreement carefully to understand the assigned responsibilities.
- Recognize that creditors operate independently of these agreements and will pursue any party listed on the account for payment.
- Take proactive steps to manage joint debts after divorce to avoid surprises.
What to Do When a Bill Hits Collections
Discovering that a bill has gone to collections can be alarming. It means the original creditor has given up on collecting the debt directly and handed it over to a collection agency. This can lead to persistent calls, legal action, and a significant hit to your credit score if not addressed promptly.
Here’s how you should handle debts in collections after divorce:
1. Don’t Ignore the Collection Notice
Ignoring collection notices only makes matters worse. It can lead to lawsuits, wage garnishments, or liens against your property. Instead, face the issue head-on as soon as you find out.
2. Validate the Debt
Contact the collection agency to request validation of the debt. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to ask for proof that the debt is legitimate and that the amount is accurate.
3. Decide on Your Course of Action
Once the debt is validated, decide how to address it:
- Negotiate a payment plan: Many collection agencies are willing to work out payment arrangements that fit your budget.
- Dispute the debt: If you believe the debt is not yours or the amount is incorrect, you can dispute it formally.
- Request your ex to cover the debt: If your divorce agreement assigned the debt to your ex, you can request that they fulfill their obligation, potentially with legal assistance.
Real Client Story: Lessons Learned from Unpaid Joint Debt
Let me share a real example from our work at Divorce661. We had a client whose ex-spouse was supposed to pay off a joint credit card balance as stipulated in their divorce agreement. Unfortunately, the ex failed to do so, and the account eventually went into collections. This not only caused the client’s credit score to plummet but also created considerable stress and financial uncertainty.
To resolve the issue, we filed a motion to enforce the divorce judgment, which allowed us to recover the unpaid amount from the ex-spouse. This case highlights the importance of ongoing vigilance and enforcement after the divorce is finalized. Even when agreements are in place, you need to monitor shared debts actively and take legal action if necessary to protect yourself.
How Divorce661 Helps You Navigate Post-Divorce Debt Issues
At Divorce661, we specialize in helping clients manage the often-overlooked financial challenges that come after divorce. If your ex is not holding up their end of the agreement, we can guide you through the post-judgment enforcement process. This includes:
- Reviewing your divorce judgment and financial obligations
- Advising you on your legal options to enforce debt repayment
- Filing the necessary paperwork and motions to hold your ex accountable
- Helping you protect your credit and financial future
Our flat-fee, 100% remote service makes it easy for clients anywhere in California to get the help they need without surprises. We aim to clean up the financial mess left behind and help you move forward without the stress of unpaid debts hanging over your head.
Tips for Monitoring Your Credit Report and Spotting Red Flags Early
Prevention is always better than cure. One of the best ways to avoid surprises with unpaid bills and collections is to keep a close eye on your credit reports. Here’s what you need to know:
Get Your Free Credit Report Annually
You’re entitled to one free credit report every year from each of the three major credit bureaus: Experian, TransUnion, and Equifax. Use these reports to:
- Spot any new debts or accounts you don’t recognize
- Check for unpaid bills or accounts that have gone to collections
- Verify that any debts assigned to your ex in the divorce are not appearing as your responsibility
Set Up Alerts and Regular Monitoring
Consider enrolling in credit monitoring services or setting up alerts for any significant changes to your credit report. This way, you can catch problems early before they snowball into bigger issues.
Act Quickly on Any Red Flags
If you notice unpaid bills or collection accounts, take immediate action by contacting the creditors or collection agencies, validating debts, and seeking legal help if necessary.
Moving Forward: Protect Your Financial Future
Dealing with unpaid bills and collections after divorce is stressful, but it’s manageable with the right knowledge and support. Remember these key takeaways:
- Your divorce agreement does not protect you from creditors if your name is on the account.
- Always monitor your credit reports regularly to catch unpaid debts early.
- Don’t ignore collection notices—validate the debt and take action promptly.
- If your ex fails to pay debts they agreed to cover, consider legal enforcement to protect your interests.
- Seek professional help to navigate post-divorce financial challenges effectively.
If you’re struggling with unpaid bills or collections after divorce and want expert assistance, visit Divorce661.com for a free consultation. We’ll help you enforce your judgment, clean up your financial picture, and move forward with confidence.
Share Your Story and Get Support
Have unpaid bills or collections popped up after your divorce? You’re not alone. Sharing your experience can help others and open the door to getting the support you need. Feel free to leave a comment below or reach out for a consultation. Together, we can work toward a more secure financial future.
