Couples battling with marital and financial problems may consider filing for bankruptcy and divorce at the same time. In this case, Chapter 7 and 13 are the most appealing options to consider because they can enable you to reorganize your finances and even get some debts discharged. It is also possible to get into a court approved repayment plan for you to gradually recover from money problems. A proficient bankruptcy attorney in Michigan and dispense information about ways a bankruptcy petition can influence divorce settlements.
The family court will determine how marital debts will be shared. You may hence find yourself with new financial obligations that will lie squarely on your back. Based on your precise situation, you need to know which type of bankruptcy suits you best. Ideally, you want your petition to have the least possible impact on the divorce settlement.
Under Chapter 7, obligations related to child support and maintenance are not discharged. Your former spouse can pursue unpaid support and possibly have your wages garnished. Under Chapter 13, the child support arrears can be paid over time, although your ex will have to agree on the proposed arrangements.
Joint debts are viewed as marital debts and hence the family courts will determine who gets to settle them. Unfortunately, the terms of the agreement between you and your creditor cannot be changed. This means that even if your partner is responsible for clearing the debts and he or she files for bankruptcy, the creditor will still hold you legally liable for making payments.
It is possible to avoid the chances of lenders coming after you because of debts that your ex should settle. If you are in money problems and your marriage is also failing, talk to a lawyer before choosing a course of action. The attorney will review your matter and determine whether you should file for divorce before bankruptcy, or vice versa.
The family courts can also rule that you should get a share in the retirement savings or benefits of your ex. If the ex in question decided to file for bankruptcy, you may wonder how this will impact your arrangement. Fortunately, pension payments are exempted during bankruptcy proceedings in most states. Your settlement will hence not get affected.
If retirement benefits are not exempted, only the share of the petitioner will be garnished. After all, the passed divorce order will transfer ownership of your portion of these benefits. As the bankruptcy courts pass their ruling, they will only consider the estates of your ex, meaning that only what the petitioner owes will be seized.
Filing for divorce and bankruptcy is not an easy matter and there are more than a few major complexities that will be involved. It pays for you to see the full picture of how things will turn out, before you even make your first step. For you to save yourself from unwarranted headaches, choose to hire an attorney who is well-versed with bankruptcy laws, financial matters and family law.
The family court will determine how marital debts will be shared. You may hence find yourself with new financial obligations that will lie squarely on your back. Based on your precise situation, you need to know which type of bankruptcy suits you best. Ideally, you want your petition to have the least possible impact on the divorce settlement.
Under Chapter 7, obligations related to child support and maintenance are not discharged. Your former spouse can pursue unpaid support and possibly have your wages garnished. Under Chapter 13, the child support arrears can be paid over time, although your ex will have to agree on the proposed arrangements.
Joint debts are viewed as marital debts and hence the family courts will determine who gets to settle them. Unfortunately, the terms of the agreement between you and your creditor cannot be changed. This means that even if your partner is responsible for clearing the debts and he or she files for bankruptcy, the creditor will still hold you legally liable for making payments.
It is possible to avoid the chances of lenders coming after you because of debts that your ex should settle. If you are in money problems and your marriage is also failing, talk to a lawyer before choosing a course of action. The attorney will review your matter and determine whether you should file for divorce before bankruptcy, or vice versa.
The family courts can also rule that you should get a share in the retirement savings or benefits of your ex. If the ex in question decided to file for bankruptcy, you may wonder how this will impact your arrangement. Fortunately, pension payments are exempted during bankruptcy proceedings in most states. Your settlement will hence not get affected.
If retirement benefits are not exempted, only the share of the petitioner will be garnished. After all, the passed divorce order will transfer ownership of your portion of these benefits. As the bankruptcy courts pass their ruling, they will only consider the estates of your ex, meaning that only what the petitioner owes will be seized.
Filing for divorce and bankruptcy is not an easy matter and there are more than a few major complexities that will be involved. It pays for you to see the full picture of how things will turn out, before you even make your first step. For you to save yourself from unwarranted headaches, choose to hire an attorney who is well-versed with bankruptcy laws, financial matters and family law.
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