Tag Archives: Divorce

How will I be Impacted by my Ex-Spouse’s Bankruptcy?

Ex-Spouse Bky pic

What happens if your ex-spouse files a bankruptcy case? Will it impact you? The answer is “it depends.” It is important to have one of our bankruptcy lawyers review your individual circumstances to help you understand how you might be affected, but below is some general guidance.

As soon as your ex-spouse files his or her Chapter 7 or Chapter 13 case, the automatic stay goes into effect and protects him or her from any collection efforts by creditors. Your ex-spouse will likely be permitted to discharge or eliminate the majority (if not all) of his or her debt – including the debt your ex agree to pay in the divorce agreement. This may result in you being liable for some of the marital debt that was not assigned to you in the divorce order because your name is still on the loan documents. It should also be noted that if your state uses community property laws, it can impact how your ex-spouse’s bankruptcy filing impacts you.

You may be wondering if your divorce decree protects you. The divorce order is a contract between you and your ex-spouse. In other words, your creditors usually are not bound by the terms of the divorce decree, unless your creditor or lender agreed to the terms of it and removed you from liability for the financial obligation Thus, what was owed by you and your ex-spouse prior to the divorce can still be owed by both of you after the divorce, regardless of what the divorce decree provides. Once the creditors are unable to take collection action against your ex-spouse, they will likely start trying to collect from you.

If your ex-spouse informs you that he or she intends to file a personal bankruptcy and you have a significant amount of joint debt, you may want to consider filing your own Chapter 7 or Chapter 13 case.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Can Bankruptcy Save Your Marriage?

Studies have shown that arguments over money play a major role in why couples divorce. The stress of not being able to make ends meet can be overwhelming. Even happily married couples begin to feel the strain when a job is lost, medical bills accumulate or other financial troubles occur. Under these circumstances, accusations and blame can lead to fighting that eventually leads to divorce.

If your marriage is feeling the negative affects of financial troubles, you should consider filing bankruptcy. Most married couples hold their debts jointly, which means both spouses are liable to pay them. This includes the mortgage, vehicle loans, credit card bills and a variety of other debts. A bankruptcy lawyer can review your financial situation and help you understand how a Chapter 7 or Chapter 13 can benefit you. Of course, filing a bankruptcy requires you and your spouse to be able to work together to obtain the debt relief you need. Thus, the sooner you seek help, the more likely this will happen.

Filing bankruptcy with your spouse is beneficial in helping you get out from under your debt. Most couples can discharge most, if not all, of their unsecured debt. Additionally, you may be able to decrease the amount of your secured debt. Lastly, by filing together, you will save legal costs by using the same attorney and having only one filing fee.

The above advantages can help save your marriage. Once you have obtained your fresh financial start, your family can move forward without the burden of debt. If you determine divorce is still necessary, the bankruptcy can make it a more streamlined process because the debt to be divided will be minimal.

If your marriage is suffering under the strain of debt, let us help you determine if bankruptcy can benefit your family. We can answer your question when you schedule a free consultation.


File Divorce Before Bankruptcy or Vice Versa?

Unfortunately, divorce and bankruptcy seem to go hand-in-hand. Financial stress is a leading contributor to many divorces. If you are facing this situation, you are likely wondering if you should file bankruptcy before you file for divorce or vice-versa. The answer depends on your unique situation.

If you and your spouse are in a highly adversarial place in your relationship, it may be impossible for you to file a bankruptcy case before your divorce. A bankruptcy requires open communication and complete financial disclosures, so many couples are unable to move past their personal differences in order to work together in their bankruptcy filing. Also, if you suspect that your spouse is hiding assets, you should seek legal help to protect yourself.

If, however, you and your spouse are amicable, you may want to consider filing bankruptcy before you divorce. It is important to understand that your divorce agreement will be binding on you and your spouse, but not upon your creditors. Thus, since most debts incurred during your marriage are joint debts (both spouses are liable to pay them), if your ex fails to pay a debt that he/she agreed to pay in the divorce settlement, you can still be held responsible by the creditor to pay the debt. Additionally, if your ex-spouse files for bankruptcy protection after the divorce and you do not, you may be held liable for all of the debt.

A bankruptcy filing is binding on both spouses and upon all their creditors. It is one of the most comprehensive means for dealing with debt, which can make the divorce process more straightforward.

Whatever your situation, it is wise to confer with an experienced lawyer and learn more about your available options. If you have questions regarding filing for bankruptcy protection, contact us for a free consultation.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Contact Us For A Free Consultation






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