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Category: Divorce and Bankruptcy

  • Twice Unlucky – Divorce And Bankruptcy

    Call: 888-297-6203

    Whether you like it or not, divorce and bankruptcy are connected. Financial troubles can lead to bankruptcy as well as divorce. Attorneys of Dallas based bankruptcy law firm Recovery Law Group reveal that nearly 14% of Jacksonville population filed for divorce at least once while nearly 11,000 people filed for bankruptcy in a year. Considering these statistics, there are bound to be some overlaps.

    When you file for Chapter 7 bankruptcy, the combined income of the couple must be less than the state median income for a household of similar size. If both the partners are earning, living in the same house increases the average household income due to which they might fail to qualify for Chapter 7 bankruptcy. This converts into an even more stressful situation.

    One of the primary things while considering bankruptcy is whether it is essential for both partners to file for bankruptcy. If all debts are in one spouse’s name, then bankruptcy can be filed by that person thereby protecting their partner’s credit rating. If, however, both have debts, filing for a joint bankruptcy makes much more sense as you can save on filing fees, credit counseling costs, etc. Another option available for a couple is that one of them files for Chapter 7 bankruptcy and wipes off all their unsecured debts, while the other opts for Chapter 13 bankruptcy and manages to reduce the principal amount and interest rate on the debts.

    A divorce comes with its own set of financial problems. Often, divorcing couples have joint mortgages. Trying to keep the property might be unsuccessful because of inadequate financing. If they opt to “Short Sell” the property, they are still liable for any deficiency. Unfortunately for them, if they do not have strong financial backing, bankruptcy is the only way out for them.

    Though it may not seem so initially, bankruptcy might be the best way out for you. If you are contemplating divorce or bankruptcy, it is important that you seek counsel from experienced lawyers by calling 888-297-6023.


      *Are you more than 60 days past due on your mortgage?

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      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • Stress Caused Due To Bankruptcy Might Result In Divorce

      Stress Caused Due To Bankruptcy Might Result In Divorce

      Call: 888-297-6203

      Statistics reveal that almost 36% of bankruptcy filers have had too much stress to deal with which resulted in them filing for divorce or separation due to it. Dallas based bankruptcy law firm Recovery Law Group lawyers say that most people separate and file for divorce due to financial issues. Though the people filing for separation are 36%, people who end up divorcing is 18%, yet the number is high enough.

      Florida has earned a nasty reputation of being the leading cities in the U.S. with the highest divorce rate. Incidentally, Florida also has the indistinction of being the state with second-highest number of bankruptcy filings. Though there isn’t any connection between the two, they do seem correlated as either has an effect on the other. if you are contemplating bankruptcy or divorce, it is vital that you consult experienced lawyers at 888-297-6023 to discuss your case.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • Everything You Needed to Know About Bankruptcy and Divorce

        Everything You Needed to Know About Bankruptcy and Divorce

        There is no denying the fact that both bankruptcy and divorce are an emotionally disturbing sequence of events which can cause drastic changes in your life. If anything can be worse than these two, say Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, is having to undergo both at the same time. Since both the issues are equally important, you will be needing the assistance of expert attorneys if you wish to file for both simultaneously. Though it is manageable, however, it is often suggested to avoid filing for both together. If you have any doubt regarding which should precede, you need to consult with expert bankruptcy lawyers at 888-297-6023.

        Filing for bankruptcy and filing for divorce can take a toll on you. Not only is the situation extremely stressful, but it also requires your time and attention on two different yet equally important aspects of your life. It is therefore important that you file for both of them at different times if possible. many lawyers suggest that filing for bankruptcy should be done prior to filing for divorce, while others suggest the opposite. Since the individual situation varies from client to client, there are no hard and fast rules recording what should be done in such a situation. Generally, people opt for whatever works in their favor.

        In case, the divorce between the spouses is to be resolved amicably, filing for bankruptcy jointly would help you save on bankruptcy filing fees as well as protecting you against the debt which both of you had accumulated. This works best in case of couples having joint property. Moreover, filing for bankruptcy often simplifies your assets and debts when you go through a divorce. However, the downfall of filing for bankruptcy jointly is that you might be disqualified from filing for chapter 7 bankruptcy due to the joint income which is higher than the average income of the state.

        Some debts are eliminated when you file for a Chapter 7 bankruptcy; while others survive bankruptcy and you must continue paying for them. Liabilities which survive bankruptcy include court fines, government fines, certain taxes, student loans, alimony and child support. Irrespective of the terms of your divorce, you are liable for the above-mentioned debts and would have to continue paying for them. It is therefore important to find an attorney who guides you through these life-altering changes in a manner that helps you resume your life after these events.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

           

        • Effect of Individual Bankruptcy Filing For Married Couples

          Effect of Individual Bankruptcy Filing For Married Couples

          It isn’t uncommon that an individual encounters a bankruptcy condition. But the fact that in a marriage, when one of the individuals goes bankrupt, he/ she is wary of the situation and is perplexed as to the consequences of filing bankruptcy alone. A bank attorney will help you clarify your doubts, especially around the impact of filing bankruptcy on the other partner when one spouse want to file one.

          The Bankruptcy estate – California

          Being a community property state, California’s rules cover the assets that are acquired post marriage as the properties that belong to both the partners, irrespective of the title is done on one of their names. Hence whether the bankruptcy filing is done separately or jointly, the bankruptcy estate will cover all of the aforementioned community property of the married couples. Adhering to the laws of the community state of California, a lot of properties become part of the bankruptcy estate and will be subject to the norms of the bankruptcy law even if you file individually. Hence talk to an experienced bankruptcy attorney who can guide you from understanding the criteria for bankruptcy exemptions and how properties can be saved.

          It is interesting to note that all separate properties belonging to your spouse (probably acquired prior to marriage) will not be a part of the bankruptcy estate. But it is imperative that those assets are mentioned in the documentation while you file for bankruptcy – the objective being that the trustee would certainly want to validate your claim that it is only an individual property and not a community property as per the state law.

          Dischargeable debts – California

          Filing for bankruptcy separately in California can relieve you of separate debts and you can get a discharge of the same. As a partner, you will also be free from the liability of joint debts since you have filed for bankruptcy. The laws of California community state forbid the creditors from pursuing the community property when one of the partners has filed for bankruptcy. The asset may also get discharged. But if the debtor who has originally filed for bankruptcy separates from his partner or dies, then the non-filing partner will lose this benefit in the long run. The creditors in such a scenario may be interested in the community property since the non-filing partner is now liable for the debt.

          Effect of bankruptcy on the non-filing partner

          • There is no effect of bankruptcy on spouse’s credit report when one files for individual bankruptcy and even if there is a community property involved.
          • The income that is generated by both partners will be considered for the calculation of household income. This is the case when the eligibility is determined for Chapter 7 bankruptcy or for calculating the repayment terms for Chapter 13 bankruptcy

          What is advisable in the state of California?

          Considering the state of California, many assess the factors and consider the options of either filing jointly or separately for bankruptcy. Here’s a quick tip for them –

          • There are a lot of exemptions as per the state law if you choose to file a joint bankruptcy. In case you are unable to exempt your assets by filing individually, then it is wise to do a joint petition. An experienced attorney will help you with the exemption options prevalent in Los Angeles, California
          • Community properties are generally excluded from the reach of creditors and hence it may be sufficient if just one of considering filing for bankruptcy if there are community assets involved. By this, you may be able to keep the partner’s credit score unaffected
          • Also, assess several other factors prior to making the decision on an individual or joint filing. Some of them could be below
            1. List of all separate properties that you and your spouse own
            2. The income of both the partners
            3. A credit score of the partners
            4. List of all properties that are designated as community assets
            5. An impending purchase that can get declined if one files for a bankruptcy
            6. Amount of other debts and their types (secured / unsecured)
            7. Any specific issues that a bank attorney may uncover while assessing your case

          Perform a detailed analysis with some experts in this field. Recovery Law Group has a great team of attorneys who will analyze your conditions and recommend on the course of action needed in your bankruptcy situation or of your partner’s. They operate in Los Angeles, California, and Dallas, Texas.


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Are Bankruptcy Lawyers Adept at Handling Debt Relief during Divorce?

            Are Bankruptcy Lawyers Adept at Handling Debt Relief during Divorce?

            Divorce is a painful time. With emotions flying high, it is difficult to manage things. If coupled with bankruptcy, it can be a double whammy! Both divorce and bankruptcy involve finances and the situation might be related or independent. Sometimes, the bad financial situation can result in straining the marriage resulting in divorce, while at other times, divorce in itself might end up burning pockets. Whatever the situation, bankruptcy can be an ideal way to get rid of huge debts and begin life afresh for both parties.

            Are Bankruptcy and Divorce Connected?

            Majority of cases of divorce are due to financial problems. However, getting one isn’t necessarily going to end your problems. If you opt for divorce during financial proceedings, there are lots of financial repercussions like court costs, child support payments, alimony payments, fees of divorce attorneys as well as division of marital debts. At any time, having or maintaining two households is more costly than one. Getting a divorce might make it impossible for you to maintain all your financial commitments. Dallas based law firm https://www.bankruptcyreliefcenter.com/ suggests it is important that couples consider all options before dissolving their marriage. This is also important as laws of divorce and personal bankruptcy are complicated and require the expert advice of experienced bankruptcy lawyers. They can help evaluate your finances and options available to come up with a plan for bankruptcy.

            What Can Bankruptcy Lawyers Help with?

            In case you are not yet divorced, bankruptcy lawyers can help draft a divorce agreement keeping in mind any joint debt obligations. Post-divorce, you require their assistance to weigh in your financial options and answer any questions regarding bankruptcy. Since spousal support and child support are obligations which cannot be discharged, wiping off unsecured debts like medical or credit card bills can provide you the necessary respite. Since bankruptcy attorneys are well versed with the laws, it is important to consult them when in bad financial situations.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

            • Bankruptcy & Divorce – Not a wise idea!

              Bankruptcy & Divorce – Not a wise idea!

              It is definitely not a great feeling to go through a personal crisis of bankruptcy and divorce at the same time. There can be a tight interlink between the two, as divorce can lead to a bankruptcy situation as assets may get separated and also if you are turning bankrupt as a married couple, you are definitely turning unhappy with your partner leading to a divorce. Despite this link, it generally isn’t a great and wise idea to file for divorce and bankruptcy at the same time. Let’s learn how!

              • As the court may request financial income information about the partners when filing for bankruptcy, it will be difficult to identify the needed information to be furnished in the court. The same applies to share of financial information to the family court related to your divorce
              • Filing for bankruptcy will halt all legal actions against you and your assets. Hence it will be difficult to divide the properties between the partners and selling of the same will be quite impossible too
              • Declaring all of your assets, debts, income and financial information is a mandatory process to be followed while filing for bankruptcy.
              • If you are struggling in a divorce scenario, it becomes a herculean ordeal to determine who owns what!
              • If you have applied for divorce at the same time as your bankruptcy, the divorce may get delayed in order to see the outcome of the bankruptcy filing case. A longer divorce journey can be emotionally draining for both the partners along with their family

              How can you mitigate the scenario of separation and divorce?

              There are some ways to handle this situation of filing for bankruptcy and also seeking a divorce. Here is one of it –

              • File for a Chapter 7 bankruptcy instead of Chapter 13 as the process is generally quicker with Chapter 7.
              • The ideal time of completion is between four and six months when opted for Chapter 7 and it can take up to five years in the case of Chapter 13 (as this involves a repayment plan).

              Hence you can get over with a Chapter 7 bankruptcy case in about half of a year and then move on to seeking the divorce.

              Some key points to remember

              When dealing with bankruptcy and divorce, here are some key points to remember

              •  Some debts associated with divorce cannot be discharged when you file for bankruptcy. Debts such as alimony, child support and attorney fees for cases related to child custody fall under this category. They continue to remain after your bankruptcy too and the debtor needs to ensure that they are repaid
              • Handling of the bankruptcy cases and divorce case needs to be delegated to different attorneys in order to avoid conflicts of interest.
              • If as a debtor and a married person, you find yourself in a situation of handling bankruptcy and a divorce case, get the expert assistance from law firms such as the Recovery Law Group. They deal with your cases with their skilled experience of handling several clients in the past.


                *Are you more than 60 days past due on your mortgage?

                *Do you own a home?

                Are you currently working?

                By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

              • Implications of Filing for Divorce during Chapter 7 Bankruptcy?

                Implications of Filing for Divorce during Chapter 7 Bankruptcy?

                Financial stress and heavy debt can cause many problems in your life, including rocking your shaky relationship. It is therefore not uncommon to find that people who are in the process of bankruptcy also have marital discord resulting in divorce. Since married couples often have their finances entangled and their financial responsibilities complicated, a sign of financial trouble may cause a rift in many marriages. No matter what the reason behind marital discord and divorce, there are some points to consider when a bankruptcy filing and divorce are taking place simultaneously. (more…)

              • Bankruptcy and its Impact on Divorce and Domestic Support Responsibilities

                Bankruptcy and its Impact on Divorce and Domestic Support Responsibilities

                Financial troubles are more common than people would like to think. More often than not, people opt for bankruptcy which can help reduce the burden of debt on the filer’s shoulders. However, despite bankruptcy, there are certain debts which cannot be discharged. These include government taxes, student loans, and divorce and domestic support. There is contention whether a private contract made between spouses in a pro se divorce case can be considered equivalent to a non-dischargeable domestic support obligation under the U.S. Bankruptcy Code. (more…)