About Me

Learning About The Process Of Filing Bankruptcy

Last year I had some financial difficulties and I couldn't pay off my debt. The uncertainty of my financial future was adding to my already stressful life. After months of worry, I finally decided to contact a bankruptcy attorney. After discussing my options with the attorney, I decided to file bankruptcy. My name is Kyle Diggler and if you're struggling with debt and considering bankruptcy, I'm here to help you. I'm not an expert, but I want to share my story and my experience of filing bankruptcy with others who are in a similar situation. As you read my blog, you'll learn all about the bankruptcy process so that you'll know what to expect. I'll also share some tips to help you start your life over financially. I hope that my blog answers all the questions you have about filing bankruptcy.

Latest Posts

Search

Tags

Learning About The Process Of Filing Bankruptcy

What You Should Know About Chapter 7 Bankruptcy And Divorce

by Evelyn Perkins

Couples who are seeking a divorce are often also experiencing financial difficulties. Chapter 7 bankruptcy can be an attractive option for those navigating the treacherous financial waters involved in the typical divorce, but you should think very hard before you file for divorce and bankruptcy at the same time. The disadvantages of doing so include:

  • Your assets will be frozen as a result of the bankruptcy filing, making it impossible for a judge to divide and distribute them.
  • Both cases may be dragged out longer than necessary as a result of complications caused by the other case.
  • In some cases, the judge may not even be able to issue temporary child or spousal support payments while the bankruptcy case is open.

Filing bankruptcy during a divorce as a strategy to avoid child support or temporary spousal support is not recommended  - the judge will probably just order that you pay it retroactively. Keep in mind that bankruptcy in no way absolves you from certain types of debt, including child support and student loans. If bankruptcy is the best solution to you and your soon-to-be 0exs spouse's financial woes, it's best to file either before or after the divorce. Your individual circumstances will dictate which is the better option for you. Here's the pros and cons of both.

Pros of Filing for Bankruptcy Before the Divorce

Getting your financial affairs in order before filing for divorce will circumvent many unnecessary complications. For instance, if you and your spouse file joint bankruptcy, you will be able to discharge most or all of your joint debts, which will help both of you get a fresh financial start after you go your separate ways. In some states, you will be able to double your exemptions if you file for joint bankruptcy. Bankruptcy laws vary by state, so be sure to consult with an experienced local Chapter 7 bankruptcy attorney for advice on your particular options. In most states, Chapter 7 bankruptcy takes about 90 days. Other important considerations concerning filing before the divorce are:

  • It eliminates the fighting over debt that is a common part of most divorce cases.
  • You can get rid of large debt payments that neither party wants to assume, such as underwater mortgages and large vehicle loan payments.
  • After you file for Chapter 7, your creditors will be prohibited from garnishing you or your spouse's paychecks or taking other collections measures, providing you both some relief from stress caused uncertain finances.

Keep in mind, however, that both you and your spouse will be responsible for any loan payments required by the bankruptcy settlement, and that the family court judge will not be able to change this in any way, so it's important that you and your soon-to-be-ex can work fairly well together and that you agree on a solid repayment plan before you file the initial divorce papers.

Pros of Filing for Bankruptcy After the Divorce is Final

There are also several reasons why filing for bankruptcy after the divorce is final may be a better option for your particular situation. Reasons why this may be the better option include:

  • The combined income of you and your spouse is higher than the income limit set by your state for qualification for Chapter 7 bankruptcy.
  • If a significant amount of child support will be involved, it may be best to file for bankruptcy after the divorce is final so that the payments can be taken into consideration by the bankruptcy judge when determining what you can reasonably pay back your creditors -- remember, it's likely that not all debts will be discharged as a result of bankruptcy.

Discussing your concerns with a skilled bankruptcy lawyer from a site like http://www.howardgoodmanlaw.com/ prior to filing for divorce is the first step in mapping our a successful plan for your financial future.

Share