Divorce and Bankruptcy
July 26, 2021
Financial troubles are one of the most common reasons for marital problems. In the last year alone, millions of Americans have faced the brutal reality of how a loss of income impacts their marriage and family. Unfortunately, when money stress becomes high, many marriages crumble.
Divorce is stressful enough. It is draining on your emotions, it is time-consuming, and if you have children, it can be a whirlwind of ups and downs. Little can be done about the emotional turmoil of divorce other than letting time heal the wounds. However, there are a few things to know about divorce and bankruptcy that can make this entire season of your life a little easier.
- Don’t file for divorce and bankruptcy at the same time. For the sake of your sanity and the sake of legal simplicity, you should avoid overlapping two legal matters at all costs. It is usually suggested that people file for bankruptcy before going through with a divorce to halt creditors from harassing them.
- Not all debts are included in bankruptcy. Many couples that are looking to become ex-spouses have incurred a lot of debt together. Credit card bills, joint signing on a mortgage, and medical bills under the same insurance are considered to be debt that has been incurred jointly. However, not all debts can be eliminated through bankruptcy. These include student loans, court fines, fines owed to governmental agencies, child support, and attorney fees for child custody.
- Chapter 7 is ideal for a quick divorce. It is essential to know that divorce does not happen overnight. The entire divorce process can take months to conclude. However, chapter 7 bankruptcy has a shorter timeline than chapter 13. Chapter 7 eliminates all dischargeable debt typically within three to six months, allowing you to file for divorce sooner once your bankruptcy is finalized. In contrast, chapter 13 bankruptcy sets up a three-to-five-year payment plan instead of eliminating all debt. This long period of time can drag out divorce for years.
Contact the firm of George R. Belche, Attorney at Law in Lawrenceville, GA, for bankruptcy legal support when you are going through serious family law and divorce-related issues.
George R. Belche, Attorney at Law
189 West Pike Street, Suite 103
Lawrenceville, GA 30046