For the majorities of couples considering divorce and bankruptcy at the same time, Chapter 13 and 7 pose as the most appealing options. These Chapters allow them to reorganize their finances and get certain debts completely discharged while allowing them to catch up on other debts using a repayment plan that is court managed. It pays to work with a seasoned bankruptcy attorney in Michigan who can educate you on how your petition will affect the divorce settlements.
The family courts will make a ruling dictating how marital debts will be settled. This means that you may have certain obligations lying squarely on your shoulders. Before deciding to proceed and file a bankruptcy petition, you need to have a good understanding about the option that would work best for your specific situation. Make sure that your petition will not have an extensive impact on divorce settlements.
When filing for Chapter 7, you must understand that your child maintenance and support obligations cannot be discharged. Normally, your ex-spouse will still be able to legally demand for the unpaid child maintenance monies. In case you choose Chapter 13, you will get a chance to repay all arrears over time. Your former spouse will even so need to agree to the arrangements you propose.
Joint debts are viewed as marital debts and hence the family courts will determine who gets to settle them. Unfortunately, the terms of the agreement between you and your creditor cannot be changed. This means that even if your partner is responsible for clearing the debts and he or she files for bankruptcy, the creditor will still hold you legally liable for making payments.
It is possible to avoid the chances of lenders coming after you because of debts that your ex should settle. If you are in money problems and your marriage is also failing, talk to a lawyer before choosing a course of action. The attorney will review your matter and determine whether you should file for divorce before bankruptcy, or vice versa.
The family courts can also rule that you should get a share in the retirement savings or benefits of your ex. If the ex in question decided to file for bankruptcy, you may wonder how this will impact your arrangement. Fortunately, pension payments are exempted during bankruptcy proceedings in most states. Your settlement will hence not get affected.
In case the laws do not exempt the retirement funds of your spouse, you will still be safe. This is because only the share of the petitioner will be seized. The divorce order automatically gets ownership of your portion transferred to you. The settlement you are supposed to get will not be considered part of the bankruptcy estate of your former spouse.
It remains imperative for you to seek dependable legal representation, especially when sinking in debt and filing for divorce at the same go. For you to benefit from the best possible outcome, you need a lawyer who has an in-depth understanding of financial matters, family law and bankruptcy laws. Because of the complexities revolving around your issue, the need to hire a highly proficient attorney must not be underestimated.
The family courts will make a ruling dictating how marital debts will be settled. This means that you may have certain obligations lying squarely on your shoulders. Before deciding to proceed and file a bankruptcy petition, you need to have a good understanding about the option that would work best for your specific situation. Make sure that your petition will not have an extensive impact on divorce settlements.
When filing for Chapter 7, you must understand that your child maintenance and support obligations cannot be discharged. Normally, your ex-spouse will still be able to legally demand for the unpaid child maintenance monies. In case you choose Chapter 13, you will get a chance to repay all arrears over time. Your former spouse will even so need to agree to the arrangements you propose.
Joint debts are viewed as marital debts and hence the family courts will determine who gets to settle them. Unfortunately, the terms of the agreement between you and your creditor cannot be changed. This means that even if your partner is responsible for clearing the debts and he or she files for bankruptcy, the creditor will still hold you legally liable for making payments.
It is possible to avoid the chances of lenders coming after you because of debts that your ex should settle. If you are in money problems and your marriage is also failing, talk to a lawyer before choosing a course of action. The attorney will review your matter and determine whether you should file for divorce before bankruptcy, or vice versa.
The family courts can also rule that you should get a share in the retirement savings or benefits of your ex. If the ex in question decided to file for bankruptcy, you may wonder how this will impact your arrangement. Fortunately, pension payments are exempted during bankruptcy proceedings in most states. Your settlement will hence not get affected.
In case the laws do not exempt the retirement funds of your spouse, you will still be safe. This is because only the share of the petitioner will be seized. The divorce order automatically gets ownership of your portion transferred to you. The settlement you are supposed to get will not be considered part of the bankruptcy estate of your former spouse.
It remains imperative for you to seek dependable legal representation, especially when sinking in debt and filing for divorce at the same go. For you to benefit from the best possible outcome, you need a lawyer who has an in-depth understanding of financial matters, family law and bankruptcy laws. Because of the complexities revolving around your issue, the need to hire a highly proficient attorney must not be underestimated.
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