Beginners Guide To filing Bankruptcy and getting a divorce in Ohio.
Many bankruptcy cases are connected to divorce or separation. This can serve as a wake-up call for individuals who have debts they cannot manage and at the same time are in a marriage that is experiencing challenges. It may be advisable for individuals in this circumstance to first talk to a bankruptcy attorney and then file for divorce. The decisions that are made in the time leading up to the divorce can have an impact on a person’s financial situations for many years.
Wood & Brewer, LLC has helped many clients by providing advice on matters relating to bankruptcy and divorce or separation. They with clients to help them make the correct decision pertaining to bankruptcy with the end goal of facilitating maximum debt relief.
Is Filing for Bankruptcy Prior to Divorce the Right Option?
When the divorce is finalized, the option of filing for bankruptcy as a married couple disappears. Additionally, filing a bankruptcy will temporarily stay the divorce or separation proceeding. It can be advantageous for couples to file for chapter 7 bankruptcy prior to divorce. However, filing for bankruptcy prior to divorce is a decision that needs to be made on a case-by-case basis, depending on the financial situation of the parties.
Chapter 7 and chapter 13 bankruptcy filings are the primary tools that can help clients get debt relief. Wood & Brewer, LLC has helped many individuals who are in the process of divorce, who are separating, or who have already divorced with their bankruptcy questions. Filing for bankruptcy while going through the divorce process is complicated.
Reconciling Marital Debts and Divorce
When a couple has joint credit cards, vehicles, mortgages, or other forms of joint debt, a judge will usually decide which individual is responsible for the debt at the time of the divorce. However, creditors are not bound by the rulings of the domestic court judge. As far as the creditors are concerned, each spouse is liable for the debt regardless of the judge’s decision.
This means that the potential exists for harsh consequences for either spouse. For example, one spouse may be required to refinance their mortgage and hold their soon-to-be ex-spouse harmless on the debt. However, nothing guarantees that the spouse looking to refinance has good enough credit or the financial ability to do the refinancing. Sadly, in many cases, if one spouse files for bankruptcy, the other one will need to do the same.
Child support payments and alimony are not discharged in bankruptcy. However, there are other marital debts that may be discharged in bankruptcy. A change in the law as of October 2005 prohibits the discharging of marital debts in chapter 7 cases. However, chapter 13 bankruptcy may be used to discharge these debts.
Bankruptcy is a powerful tool that can provide needed debt relief. Wood & Brewer, LLC can help people make the right decisions with the goal of creating a better financial future.
Free Consultations Available
Wood & Brewer, LLC invites individuals with questions about debt, bankruptcy, and divorce to contact them to learn about their options before, during, and after divorce or separation.