Bankruptcy

The Legal Aspects Associated with Bankruptcy and Divorce

Things can become very complicated if you have to deal with both bankruptcy and divorce at the same time. There is so much drama involved that mistakes are very much likely to happen, no matter how hard you try to avoid the same. If you have ended your marriage and now filing a petition to be declared as bankrupt, you must carefully plan everything.

Divorcing Your Partner Does Not Mean A Break From The Joint Debts

You are liable to pay for the joint debts even after divorcing your partner. Both of you still owe the same, especially the unsecured debts, such as credit cards. Even if you never used the cards, if it was taken jointly in the name of both the spouses, you may start get collection calls to pay the same. Therefore, while you are dealing with the divorce proceedings, it is very important for you to address all these issues thoroughly. If there are joint debts, both you and your spouse will be liable for it – there’s no easy way out.

Dealing with Secured Debts

When you have to deal with both bankruptcy and divorce, it can put you in a very painful situation. Luckily, things are not as complex when it comes to handling secured debts. Whether it is a mortgage loan or a car loan, most possibly, only one partner is going to keep the car or the home when divorce takes place. So, you can easily make a mutually agreeable decision in this regard that which partner is going to keep the properties and how the other partner is going to be compensated.

Closing And Freezing Of Accounts

In case you still have some joint accounts active even after you have divorced your partner, you may consider closing or freezing all those accounts immediately to stop further financial bleeding. Once you do this, you must gather relevant documents in proof of your claim that you should not be liable for these accounts anymore because the marriage has dissolved.

Overall, as we can see, dealing with both bankruptcy and divorce can be a troublesome task. Therefore, hiring an experienced lawyer to help you with this can prove to be a nice idea.


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Posted in Bankruptcy, Filing Bankruptcy | 3 Comments »

3 Responses to “The Legal Aspects Associated with Bankruptcy and Divorce”

  1. [...] Hiring bankruptcy attorneys can help you ensure a favorable judgment but only if you have hired a reputable lawyer. So, you have to be very careful with your selection. It is important for you to keep in mind that bankruptcy is going to stay on your credit report for the next ten years. Therefore, you must learn from your mistakes and start showing some financial discipline. Life after bankruptcy is difficult and so is the recovery process. Still, things can be a little easier if you show a positive attitude and put some serious and consistent efforts into it. @import url(http://www.google.com/cse/api/branding.css); [...]

  2. scott says:

    Most of the people are going through mental of financial stress and because of this financial stress the cases of divorce become more and more and some people often think about bankruptcy in order to get the control of everything. If you think about the bankruptcy even your spouse thinking about the bankruptcy then must read this information. Bankruptcy effects the divorce and vice versa.

  3. michael says:

    Divorce and Bankruptcy are two tragic phases of one’s life, if they come together. It is very important to deal them with a precaution. Generally, Couples have joint credit cards, Bank accounts and debts also. If you are going to end your marriage, it is very necessary to clear all such issues. Unsecured debts can make a big problem for you. If you have joint cards, first step should be to freeze them and then you can close these accounts on a permanent basis or at least can finish your liability on the basis of your marriage. In case of unsecured debts like car loan, the liability can be decided easily, who will use the car or home, he will be liable for all dues. The article has mentioned if you can not deal, you can go to get the services of a lawyer and it is good to appoint a lawyer as the lawyer will guide to get the best out of waste. Break up of marriage and Bankruptcy is very painful moments of life and should be avoided if possible. If no other option is there then go for both carefully, after all these are two most important decision of life.

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