How Bankruptcy Can Impact Your Divorce
Not only does divorce bring with emotional difficulties, but financial difficulties can arise as well. When a couple divorces, their existing debt will be divided between the two parties, often resulting in an overwhelming financial burden for one or both parties.
After a divorce, you want to work toward rebuilding your life. Unfortunately, this can be challenging when you are burdened with debt acquired during the marriage. At Goering & Goering, LLC, our bankruptcy attorneys provide seasoned legal counsel for clients facing divorce, including support through the bankruptcy process.
Knowing When To File For Bankruptcy
Ohio is an “equitable distribution” state, which means that during a divorce, marital assets (including debt) will be divided according to what the courts deem fair. This will not necessarily be a 50/50 split. It may be hard to predict ahead of time how the debts accrued during the marriage will be divided between you and your former spouse.
If you suspect that paying off those debts alone would create a dangerous financial situation, or if you have already acquired a large amount of debt after a divorce, bankruptcy can give you the opportunity to get a fresh start. Also, if you are going through a divorce currently, you may be wondering whether you should file for bankruptcy with your spouse jointly, or if you should file alone after the divorce has occurred. It is generally not advisable to file for bankruptcy and divorce at the same time, as the bankruptcy case can complicate the divorce process. Assets would not be able to be distributed until the bankruptcy case is resolved.
As your experienced bankruptcy attorneys we understand filing for bankruptcy, depends on a number of factors, such as:
- The type of bankruptcy – The timeline of bankruptcy varies, depending on the type. Chapter 7 can be completed in a few months, but Chapter 13 take three to five years to complete.
- Property owned – The exemptions for the amount of property you are allowed to keep are doubled when you file with your spouse.
- Income – Your income is used in the means test to determine if you qualify for bankruptcy. If the combined income of you and your spouse is too high, you may not qualify.
- Responsibility for Debt – During the divorce process, the court will assign certain debts to each spouse. If the courts assign certain debt to your ex-spouse, but you were a co-signer on that loan, you might be held responsible for the debt anyway if your spouse fails to repay. Before getting divorced, you can eliminate a large portion of your combined debt—if not all of it—through bankruptcy.
These are all very important factors to keep in mind, and it can be stressful and frustrating as well. We understand the laws, and will confidently guide you through the various processes involved in your divorce bankruptcy case. You won’t be alone.
Helping You Pursue Debt Relief Through Effective Legal Representation
Each situation is unique, so it is important to seek the advice of an experienced attorney. Our bankruptcy attorneys act as advisers to each of our clients during these difficult life decisions. We listen to your goals and aspirations and will outline all viable options, so you can make an informed decision about how to best pursue debt relief. Call Goering & Goering, LLC, at 513-838-2407 or contact us online to learn about your option for divorce and bankruptcy during a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.