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  • 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.


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    • 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.