Bankruptcy and Divorce
Two of the most stressful times in a person’s life may be going through a divorce and going through bankruptcy. When the two events occur simultaneously or involve each other, the complications, confusion, and stress may be significantly compounded. Laws & Demers, PLLC, can help you navigate filing for bankruptcy and also help determine how it pertains to a divorce.
When a couple is divorcing and one party files for bankruptcy, the other party can still be held liable for any joint debt. This can include credit card debt, car loan, or mortgage debt that is in the arrears. When someone owes alimony or child support, that debt does not get discharged through bankruptcy and needs to still be paid. When a couple files for bankruptcy together and then proceeds with a divorce, the debts can still be discharged under Chapter 7 Bankruptcy. This can help both parties unload debt neither of them can pay back.
How Will Bankruptcy Affect My Divorce?
It is vital that couples, soon-to-be ex-spouses, and divorced parties understand how filing for bankruptcy will impact a divorce and the monetary obligations they may have pertaining to that divorce. The process can be complicated for all involved. But with a comprehensive knowledge of how bankruptcy works, the timeline involved, and how martial property and marital debt is viewed in court, all parties can move forward quickly. There are many documents to review and the type of bankruptcy pursued can affect how debts are handled and divided. Questions such as “who gets the house?” can be complicated even more by the question of “who pays the back due mortgage?”
Experienced Bankruptcy & Divorce Attorneys
The financial strain of divorce can be difficult as two people essentially need to adjust to life on one income or with support from a former spouse. However, with legal counsel from Laws & Demers, PLLC, bankruptcy during or after divorce can be a smooth transition and everyone involved can move forward on fresh financial footing. Our firm has the compassion and understanding to know that anyone can be affected by bankruptcy and find themselves wondering how it will affect a divorce or financial obligations related to a divorce. We can be your source for up-to-date information and support when you need it most. Let us hear the details of your situation and help you find a more secure and financially stable future.
For child custody questions or to schedule a free consultation please contact us at 603-880-2000.