Everything You Need To Know About Filing Bankruptcy After Divorce

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bankruptcy after divorce

Of the many reasons people have for filing bankruptcy, divorce is one of the most common. Many of those who have experienced divorce tend to encounter financial problems. For instance, they might struggle to pay bills now that they rely on only one income, or they may have difficulty paying their bills due to support obligations.

But no matter what the reason is for filing for bankruptcy following divorce, you must go over it with your divorce attorney. If you have yet to secure a bankruptcy lawyer, you will need to go over the details of your divorce with them once you do, as your divorce terms could affect your bankruptcy case.

Of course, you can simplify things by hiring an attorney who specializes in both divorce and bankruptcy. At Crary Buchanan, Attorneys at Law, we are dedicated to legal matters of all types. As such, we can help you with divorce, bankruptcy, and more. With our extensive experience, you can trust that you are getting expert legal representation from professionals who excel in many areas of law.

When you have our services in your corner, you can rest easy knowing that our legal team will guide and direct you in your divorce and bankruptcy every step of the way. If you are ready to set up a consultation, please call our law office toll-free at (888) 899-8161. If you live in Stuart or the surrounding areas, please feel free to contact us locally at (772) 287-2600.

If you prefer, you may also complete our online contact form, and a trusted member of our staff will get back to you. If you need an experienced bankruptcy and/or divorce attorney in Stuart, we encourage you to call us to schedule a consultation.

You can also continue reading below to learn more about what takes place in bankruptcy after divorce. 

Bankruptcy and Domestic Support Obligations

Some people are under the impression that they can eliminate domestic support obligations, such as a child or spousal support, whenever they file for bankruptcy. This is false. Such obligations do not meet the conditions for debt forgiveness (bankruptcy discharge). 

However, if you were to file a Bankruptcy Code application under Chapter 13, you can get bankruptcy assistance for overdue child support or alimony. When you file Chapter 13, you agree to a plan to make repayment. This plan lasts anywhere between three and five years. 

If any debts are ineligible for forgiveness, you must pay them back in full via your Chapter 13 plan. As such, you may include overdue child support or alimony in your Chapter 13 plan. If you are on a five-year plan, you may divide your payments up over the course of 60 months. 

When you file a bankruptcy case under Chapter 13, it might help you avoid imprisonment or other penalties related to not paying alimony or child support. However, you will be required to make timely payments on all future support obligations in order to maintain Chapter 13. Moreover, on-time payments will keep you from getting sanctioned by the family court.

Bankruptcy and Joint Unsecured Debts

In the event that you and your former spouse owe joint debts, these debts become a part of your case. Your former spouse will get a notice of bankruptcy application as a joint debtor. And in the case of Chapter 7, most of the unsecured debts have been discharged. Some examples of the types of unsecured debts that you may get rid of when filing Chapter 7 are as follows:

1. Most personal judgments
2. Some tax debts (old)
3. Old rent payments
4. Credit card bills
5. Old utility bills
6. Personal loans
7. Medical bills

In Chapter 13 cases, unsecured creditors will get part of the debt that you owe. There is a percentage paid to unsecured creditors, but that percentage depends on numerous factors, such as your expenses, income, and debts. 

Upon completing your case for Chapter 13, the remaining amount owed to the unsecured creditor will be forgiven. Your bankruptcy application will not relieve your former spouse from legal liability related to unsecured debts. And if your former spouse is a joint debtor, creditors can sue them to get any remaining part of that debt.

It’s understandable if you feel overwhelmed with the thought of bankruptcy and divorce. But when you have the legal experts of Crary Buchanan at your side, you will have the professional guidance and direction to help you get the outcome you desire.

Contact Crary Buchanan Attorneys at Law Today

Crary Buchanan is a general practice law firm dedicated to providing expert legal services in the state of Florida. Our lawyers have significant legal expertise in virtually every major area of law, and most of our associates are Board Certified by the Florida Bar in their respective areas of proficiency. 

This extensive legal experience, coupled with our many years of service and dedication in the community, enables our lawyers to provide comprehensive representation to our clients. So if you need a knowledgeable divorce attorney during this difficult chapter of your life, contact the law office of Crary Buchanan today.

We proudly serve Stuart and the surrounding areas and are here to assist you in making your divorce go as smoothly as possible.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.