For the majorities of couples considering divorce and bankruptcy at the same time, Chapter 13 and 7 pose as the most appealing options. These Chapters allow them to reorganize their finances and get certain debts completely discharged while allowing them to catch up on other debts using a repayment plan that is court managed. It pays to work with a seasoned bankruptcy attorney in Michigan who can educate you on how your petition will affect the divorce settlements.
There are instances when the divorce courts will order certain obligations or demand that you pay off your marital debts. When in such a situation, knowing which type of bankruptcy to choose will be crucial. If you are already battling with money issues, you need to have a good idea about how your bankruptcy petition will impact your 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 usually looked at closely during divorce proceedings. The courts help to determine who should settle the debts in question though the terms and conditions of the agreement between you and your lender will remain unchanged. In short, if the spouse responsible for settling these co-signed debts files for bankruptcy, the creditor can still pursue you for 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.
A divorce proceeding could result in you getting a portion of the retirement benefits or savings of your spouse. Again, it is normal to worry about the manner in which bankruptcy can affect this arrangement. The good news is that in most states, pension payments are fully exempted during bankruptcy proceedings and therefore your settlement may not be affected.
In case the laws do not exempt the retirement funds of your spouse, you will still be safe. This is because only the share of the petitioner will be seized. The divorce order automatically gets ownership of your portion transferred to you. The settlement you are supposed to get will not be considered part of the bankruptcy estate of your former spouse.
The need to find reliable legal representation should not be underestimated, especially if you are filing for divorce and struggling under unmanageable debts at the same time. In this case, you need an attorney who understands bankruptcies, family law and various other practices such as finance. Given the complexity of your matter, you need to have a top rated lawyer in your corner.
There are instances when the divorce courts will order certain obligations or demand that you pay off your marital debts. When in such a situation, knowing which type of bankruptcy to choose will be crucial. If you are already battling with money issues, you need to have a good idea about how your bankruptcy petition will impact your 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 usually looked at closely during divorce proceedings. The courts help to determine who should settle the debts in question though the terms and conditions of the agreement between you and your lender will remain unchanged. In short, if the spouse responsible for settling these co-signed debts files for bankruptcy, the creditor can still pursue you for 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.
A divorce proceeding could result in you getting a portion of the retirement benefits or savings of your spouse. Again, it is normal to worry about the manner in which bankruptcy can affect this arrangement. The good news is that in most states, pension payments are fully exempted during bankruptcy proceedings and therefore your settlement may not be affected.
In case the laws do not exempt the retirement funds of your spouse, you will still be safe. This is because only the share of the petitioner will be seized. The divorce order automatically gets ownership of your portion transferred to you. The settlement you are supposed to get will not be considered part of the bankruptcy estate of your former spouse.
The need to find reliable legal representation should not be underestimated, especially if you are filing for divorce and struggling under unmanageable debts at the same time. In this case, you need an attorney who understands bankruptcies, family law and various other practices such as finance. Given the complexity of your matter, you need to have a top rated lawyer in your corner.
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