DIVORCE AND BANKRUPTCY
BANKRUPTCY BEFORE OR AFTER DIVORCE?
Financial pressures can be a major factor leading to the breakup of a marriage. In most cases, those pressures only get worse during and after divorce. Financial stress is caused by divorce as each spouse is now tries to support two separate households on less income than the couple had when married.
Bankruptcy can spell financial relief in these types of situations. Should you file bankruptcy before or after a divorce?
The answers to these questions are highly complex and depend on the specifics of your situation. Only an experienced bankruptcy attorney like Michael Schwartz can provide the advice that is right for you.
At the Law Offices of Michael Schwartz, we have over 20 years of experience in providing debt relief to the hard working people of Pennsylvania. We can review your situation in a free consultation and discuss your legal options.
DISCHARGING DEBTS BEFORE DIVORCE
It is often better to file for bankruptcy before divorcing, particularly when the couple has a significant amount of jointly held dischargeable debt, such as credit card and medical bills. A Chapter 7 bankruptcy completely eliminates many types of unsecured debts like credit cards, medical bills and personal loans. In addition, a Chapter 7 bankruptcy can be achieved in as little as four months, before the divorce is finalized. You may be able to achieve debt relief in a shorter time frame than the divorce process. By discharging the marital debt through bankruptcy, each spouse can restart their new lives with a fresh financial start.
Attorney Michael Schwartz has helped many people in this situation obtain a new financial start. In your case, our firm will work to obtain maximum debt relief so that you can make a successful transition to your new life.
DISCHARGING DEBTS AFTER DIVORCE
After divorce, bankruptcy may be a good way to resolve debt that a spouse has accumulated throughout the marriage. If debt is joint, however, it will only be discharge with respect to the spouse that files bankruptcy - if only one spouse files, a creditor can still collect debt from the other spouse if the debt is in joint names. In this case, to totally resolve the debt, both spouses may need to file bankruptcy. Some debts resulting from the divorce proceedings cannot be discharged, such as child support and court ordered spousal support (alimony). By eliminating other debts however, a Chapter bankruptcy after divorce can provide the necessary cash flow to pay your domestic support obligations.
Our firm can review your situation and recommend the right solution for you. Then we work to obtain the maximum debt relief for you, while enabling you to retain as many assets as possible. Call Michael Schwartz at 215-396-7900 to schedule a free consultation. Make Michael Schwartz your bankruptcy lawyer near me.