What Happens During Bankruptcy And Divorce
Many people are not aware of the correlation that frequently exists between divorce and bankruptcy. There is often enough money to support one household while the spouses are together, but not enough to support two households once they separate. If you are considering divorce and fear that the split may create financial hardship, you should speak to a bankruptcy lawyer about bankruptcy and divorce options.
Our bankruptcy attorneys at Advanced Bankruptcy Legal Services of Connecticut have seen firsthand the issues that can arise when spouses divorce without fully considering the financial impact for each party. Steps can be taken to eliminate marital debt prior to the divorce that frequently allows both spouses to walk away in a stronger financial position after the divorce.
Helping Divorcing Spouses Plan For A Better Future
In many cases, it is most advantageous for divorcing spouses to file a joint bankruptcy petition prior to filing for divorce. In addition to eliminating debt, it can help simplify the property division proceeding. We will review all your joint and separate debts and explain the available bankruptcy options as well as the pros and cons associated with each one.
If You Are Divorced And Need Help With Debt Relief
For many divorced people, it is only after the divorce has been finalized that they recognize the need for debt relief. While bankruptcy can be an effective solution in these situations, it is important to understand how certain debts are handled and the potential consequences of attempting to discharge others.
If you have been ordered to pay child support or alimony, these debts cannot be discharged in bankruptcy, although you may be able to repay arrearages in a Chapter 13 filing. If a joint debt was assigned to you as part of your property settlement, the debt may be able to be discharged in bankruptcy, but the creditor has the right to pursue payment from your former spouse. In these cases, your former spouse can seek a judgment against you to recover any money he or she was forced to pay as a result, which is why you need to be careful with any joint debts during your divorce.
Contact Us For Help When Divorce And Bankruptcy Meet
Contact our attorneys to discuss your questions about how bankruptcy can help you during or after a divorce. We offer a free initial consultation to all new clients. Call our New Britain office at 860-674-8003 or our Bloomfield location at 860-242-0574 or send us an email.