After the Love Has Gone…How to Handle Divorce and Bankruptcy
Even the most romantic of relationships can become torn apart when debt piles up and overwhelms every waking hour. It will come as no surprise that money and finances rank at number three in the top ten reasons behind failed marriages. Equally unsurprising is that divorce is the leading cause for filing for bankruptcy.
If you are considering filing for divorce and bankruptcy, it is imperative that you get the right advice as there will be so many variables that will have to be considered, especially if the separation is not amicable.
You will need to retain the services of an attorney who practices comfortably in both family court and bankruptcy court. Here at the offices of Barbara May Law we have experts in both fields who will handle your cases in a friendly, efficient and professional manner.
In general, it is advisable to file for bankruptcy prior to divorce as an “automatic stay” will immediately halt creditors from pursuing debt and freezes your property and assets. The process will also clarify the exact financial position of both parties which will. of course, be of primary importance during the ensuing divorce proceedings.
Your attorney will also help you ascertain whether to file for Chapter 7 (liquidation) or Chapter 13 (reorganisation). However, if you do file for Chapter 7 it is important to be aware that not all debts can be discharged. The most common of these are alimony, child support, government fines, student loans, court fees and attorney fees for custody or child support.
However daunting all this may seem with the right attorney at your side you can set your sights on a clean slate on which you can start planning the rest of your life.