Divorce and finances, bankruptcy may offer a fresh start

Bankruptcy relief can provide divorced couples with a clean slate.

2013-02-16

February 16, 2013 (Press-News.org) Divorce and finances, bankruptcy may offer a fresh start

Article provided by John Christopher Robinson
Visit us at http://www.debtfreeky.com

When a couple gets a divorce, most property accumulated by the couple is divided. This includes any debts accumulated by the couple. This can lead to financial stresses in a number of ways. The most common stressor comes from the fact that the same amount of money now needs to support two households. Additional issues can arise if accounts were not properly managed during the divorce process.

If, for example, confusion existed on who should pay joint bills like a mortgage payment, bills may have gone unpaid. As a result, the late payment could reduce both spouses' credit ratings. This could also lead to late fees and other additional costs that can make already difficult financial times unmanageable.

In some cases, filing for bankruptcy during divorce can present an opportunity for a financial restart for those going through a divorce by removing the obligation to pay for certain debts.

How divorce impacts debt

There are many issues to review when considering filing for bankruptcy before or after a divorce. Three important areas include:
-Joint debt
-Court ordered payments
-Property settlement payments

It is important to note that a divorce decree does not remove an obligation to pay back debt. As a result, if one ex-spouse files for bankruptcy and receives a discharge for joint debts, the other spouse may remain liable to repay that debt.

In addition, court ordered support payments generally cannot be discharged in bankruptcy. This means spousal support and child support payments often remain intact even after a bankruptcy petition has been granted.

If granted, bankruptcy can also impact property settlement payments. How these payments will be impacted depends on the type of petition that was granted. If a petition for a Chapter 7 bankruptcy is granted, the payments often remain in place. However, if the applicant received a Chapter 13 petition the payments are generally discharged. If the payments are discharged, they no longer need to be paid.

When to file for bankruptcy

Determining the right time to file for bankruptcy relief can be difficult. In some cases, it may be best to file before divorce, in others it can be better to file after the divorce is finalized. Some people need to deal with immediate financial concerns, like the potential foreclosure of a home, and file before divorce. Others find it easier to pass the "Means Test," a test the bankruptcy court uses to review the applicant's income before granting bankruptcy protections, when they are single and need to report only one income.

Navigating through the various considerations involved in bankruptcy during or after a divorce is a complicated process. If you are considering filing for bankruptcy, contact an experienced bankruptcy attorney to discuss your situation.

ELSE PRESS RELEASES FROM THIS DATE:

Oregon Chapter 13 bankruptcy and lien stripping

2013-02-16

Oregon Chapter 13 bankruptcy and lien stripping Article provided by Hackett & Harris LLC Visit us at http://www.portlandlawyerbankruptcy.com Oregon residents who are going through bankruptcy may be able to strip liens from second mortgages and car loans to make the payments more manageable. However, lien stripping is only available to individuals or families that are going through a Chapter 13 bankruptcy. What is chapter 13 bankruptcy? In a chapter 13 bankruptcy debts are repaid on a three to five year payment plan schedule. The payment plan amount is ...

Minneapolis study sheds light on causes of bike-car accidents

2013-02-16

Minneapolis study sheds light on causes of bike-car accidents Article provided by Walsh & Gaertner, P.A. Visit us at http://www.walsh-gaertner.com The Twin Cities area is well-known throughout the country for its pro-bike culture. Metro-area Minnesotans love to ride, and local governments in St. Paul, Minneapolis and many suburban communities have been working hard over the last several years to increase options for cyclists and make Twin Cities streets safer for bicycle commuters. Despite these improvements, car-bike accidents are still a pressing concern ...

How does an immigrant qualify for asylum?

2013-02-16

How does an immigrant qualify for asylum? Article provided by Mark E. Jacobs, P.C. Visit us at http://www.markejacobslaw.com/ As the political debate regarding immigration heats up in the United States Congress, there is bi-partisan agreement that immigrants here both legally and illegally are seeking better lives for themselves and their families. However, if someone entered the U.S. illegally or overstayed their visa, their status puts them in constant danger of deportation. One way someone in the U.S. illegally might be able regain legal status is to apply for ...

Pennsylvania police crack down on underage drinking

2013-02-16

Pennsylvania police crack down on underage drinking Article provided by Blanarik Law Offices Visit us at http://www.blanariklawoffices.com Though the legal drinking age is 21, many teens in Pennsylvania choose to consume alcohol anyway. Underage drinking is particularly prevalent on Pennsylvania's many college campuses. However, young people would be mistaken to think that mere fact that underage drinking is not uncommon means that it is tolerated by law enforcement. This fall, Pennsylvania State Police launched a crackdown on underage drinking, focusing on college ...

Teens more likely to be distracted while behind the wheel

2013-02-16

Teens more likely to be distracted while behind the wheel Article provided by Donohue, Sabo, Varley & Huttner, L.L.P. Visit us at http://www.dsvalaw.com The hazards that distracted drivers pose to those sharing the nation's roadways have been made painfully clear in media recently. According to the Department of Transportation, distracted drivers caused more than 416,000 injures and 3,000 deaths in 2010 alone. Although distracted driving is a problem for all age groups, experts say that teens are at a higher risk. Teens and texting The first reason that ...

Recognizing traumatic brain injury in Florida

2013-02-16

Recognizing traumatic brain injury in Florida Article provided by The Burns Law Firm Visit us at http://www.pensacoladefenselawyer.com Recently, a Florida Senator's 12-year-old daughter suffered from a concussion after being involved in a golf-cart accident. According to The Miami Herald, she received treatment at Miami Children's Hospital and is now recovering at home. She is in fair condition but is undergoing neurological testing. The continued neurological testing is necessary since the symptoms of a more serious condition may not show up right away. She is ...

Michigan's No-Fault Medical Coverage May Come to an End

2013-02-16

Michigan's No-Fault Medical Coverage May Come to an End Article provided by Joseph T. Barberi, P.C. Visit us at http://www.josephbarberi.com/ Citing unacceptably high costs, advocates support a proposal in the Michigan legislature that would eliminate Michigan's mandatory no-fault car insurance system. As it now stands, no-fault coverage for injuries sustained by a driver or passenger in a motor vehicle accident provides up to $500,000 for medical expenses. Once the $500,000 limit is reached, medical costs are paid from the catastrophic claims fund, with essentially ...

Protecting a small business during divorce in California

2013-02-16

Protecting a small business during divorce in California Article provided by Law Offices of Evan Samuelson Visit us at http://www.samfamlaw.com/ When it comes to divorce and the division of property between ex-spouses, each state has a slightly different set of rules. In California and a handful of other states, the courts follow a system known as community property law. When a couple files for divorce in California, their assets are categorized as either community property or separate property, and each type of property is divided differently. Community property ...

Navigating through marriage-based immigration

2013-02-16

Navigating through marriage-based immigration Article provided by Kim H. Buhler, Attorney at Law, P.C. Visit us at http://www.buhlerlawoffice.com As many people know, love can transcend boundaries, including international ones. American citizens who marry non-citizens are permitted under United States immigration law to bring their spouses to live in Utah or any other state, provided the conditions of the law are met. International engagements A foreign national who is engaged to an American citizen can obtain a fiance (or fiancee) visa to enter the United ...

Teens at greater risk for distracted driving

2013-02-16

Teens at greater risk for distracted driving Article provided by Ellis Law Offices LLP Visit us at http://www.ellislawoffices.com In Massachusetts and across the nation, distracted driving has received increasing attention as the general population becomes more aware of its dangers. This is a good thing, as according to the Department of Transportation, distracted driving killed over 3,000 people in car accidents nationwide during 2010 alone. In addition, the department also reported that distracted drivers injured 416,000 people during the same time period. Although ...

Divorce and finances, bankruptcy may offer a fresh start

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: