Chapter 7 bankruptcy can be one of the best options for individuals or divorcing couples who find themselves in a troubling financial situation, but there are several factors that need to be considered when deciding whether to declare bankruptcy before or after divorce.
Bankruptcy and Divorce
It is important to do your research and have any bankruptcy-related questions answered. You should speak to a bankruptcy and divorce lawyer as soon as possible even if one of the spouses does not wish to cooperate.
The decision to file bankruptcy will depend on many outside factors such as income, household size, and status of your marital debts.
It’s virtually impossible to get student loan debt discharged in a bankruptcy, so you’re stuck with it – which can exacerbate your other marital issues. In fact, more than a third of student loan borrowers claim that debt contributed to their divorce.
The decorations have all been packed away, and all that’s left of the holidays are the bills. Is it time to start worrying about how you’re going to cover your debts?
John J. Gilligan, a family lawyer in Long Beach, answers: The filing of bankruptcy does not discharge a child support order. Child support must still be paid by the bankrupt party in the amount set forth in the family law court order. John Gilligan is a founding partner at the family law firm offices of […]
Rosanne DeTorres, an Attorney from New Jersey, explores the financial aspects of divorce, including equitable distribution of assets and debts.
What happens in a case of shared debt? For instance, if one spouse started a business during the marriage and lost money, are both of the spouses equally responsible for that debt?
The threat of a potential bankruptcy is, in all too many divorces, a real one that should not be ignored. Recognize the warning signs and learn how to protect yourself.
Divorce rates and the financial challenges faced by divorcing couples are on the rise, placing married couples at a higher risk for both divorce and bankruptcy.