Couples battling with marital and financial problems may consider filing for bankruptcy and divorce at the same time. In this case, Chapter 7 and 13 are the most appealing options to consider because they can enable you to reorganize your finances and even get some debts discharged. It is also possible to get into a court approved repayment plan for you to gradually recover from money problems. A proficient bankruptcy attorney in Michigan and dispense information about ways a bankruptcy petition can influence divorce settlements.
There are instances when the divorce courts will order certain obligations or demand that you pay off your marital debts. When in such a situation, knowing which type of bankruptcy to choose will be crucial. If you are already battling with money issues, you need to have a good idea about how your bankruptcy petition will impact your divorce settlement.
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.
If retirement benefits are not exempted, only the share of the petitioner will be garnished. After all, the passed divorce order will transfer ownership of your portion of these benefits. As the bankruptcy courts pass their ruling, they will only consider the estates of your ex, meaning that only what the petitioner owes will be seized.
The need to find reliable legal representation should not be underestimated, especially if you are filing for divorce and struggling under unmanageable debts at the same time. In this case, you need an attorney who understands bankruptcies, family law and various other practices such as finance. Given the complexity of your matter, you need to have a top rated lawyer in your corner.
There are instances when the divorce courts will order certain obligations or demand that you pay off your marital debts. When in such a situation, knowing which type of bankruptcy to choose will be crucial. If you are already battling with money issues, you need to have a good idea about how your bankruptcy petition will impact your divorce settlement.
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.
If retirement benefits are not exempted, only the share of the petitioner will be garnished. After all, the passed divorce order will transfer ownership of your portion of these benefits. As the bankruptcy courts pass their ruling, they will only consider the estates of your ex, meaning that only what the petitioner owes will be seized.
The need to find reliable legal representation should not be underestimated, especially if you are filing for divorce and struggling under unmanageable debts at the same time. In this case, you need an attorney who understands bankruptcies, family law and various other practices such as finance. Given the complexity of your matter, you need to have a top rated lawyer in your corner.
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