Can Bankruptcy Help You Escape Debt from Divorce Settlement?

Particularly with debt division, divorce may be emotionally and financially taxing. Many people question whether declaring Bankruptcy can help their divorce settlement’s financial load to be either lessened or eliminated. Although, in some situations, it offers relief, it’s crucial to know what it can and cannot do.

Dealing with Divorce Settlement and Bankruptcy

Often hand in hand are Bankruptcy and divorce. Both partners of a broken marriage have to decide how to divide debts and assets. If one or both of the people be experiencing severe debt, it could appear as a solution. To decide the best course of action, though, you should consult divorce and bankruptcy attorneys.

What Bankruptcy Can and Cannot Discharge?

While Bankruptcy can help some debts be released, not all financial commitments from a divorce settlement can be written off. The following is what you need to know:

Debts Possibly Eliminated:

• Credit Card Debt: If you have credit card debt from your marriage, a personal bankruptcy lawyer could assist in Chapter 7 or Chapter 13 reorganizing your debt.
• Medical Bills: You may be released unpaid medical bills assigned to you during the divorce.
• Personal Loans: If you have debt from a loan taken out during your marriage and find yourself unable to pay it back, Bankruptcy can assist in wiping it off.

Debt That Cannot Clear:

• Child Support and Alimony: Filing for Bankruptcy will not release obligations like spousal or child support. These payments have to keep coming as directed by the court.
• Certain Property Settlements: If your settlement call for payments for property distribution, Chapter 7 may not discharge these debts. Chapter 13, though, might let you arrange them into a reasonable pay schedule.

When should one think about declaring Bankruptcy?

If your post-divorce debt prove unmanageable, Bankruptcy could be something you want to look into. Here are some scenarios when it might help:

• Your share of the divorce’s assigned marital debts is unaffordable.
• You need quick help as creditors are harassers.
• Before the divorce, you were thinking about declaring Bankruptcy to streamline financial issues.
• You wish to guard yourself against the financial problems of your ex-spouse.
• Speaking with a Florida divorce attorney will help you determine whether it is the appropriate action prior to, during, or following your separation.

Selecting Correct Legal Support

Dealing simultaneously with Bankruptcy and divorce can be challenging. A divorce settlement attorney near me can help you to make sure you satisfy your legal needs and safeguard your financial future. They may also assist you in deciding which of Chapters 7 or 13 best fits your particular circumstances.

Last Thoughts

After a separation, it can help relieve certain debts; it is not a fix-all answer, though. Making the best financial decision requires knowing which debts are dischargeable and consulting a divorce and bankruptcy professional. Legal support can assist you in negotiating this difficult period and pursuing a more solid future if you are dealing with debt linked to divorce.