When Bankruptcy and Divorce Converge
Financial issues play a major role in any divorce. In addition to dividing assets, debts need to be handled as well. Bankruptcy may be a method of dealing with those debts, either before or after the divorce.
The 2005 Bankruptcy Reform Act made considerable changes to the way that bankruptcy can be handled in relation to a divorce. At Bryant Law Office in Springfield, Illinois, our attorneys understand how to navigate through the area of the law where bankruptcy and divorce intersect. We know how to meet your needs.
Bankruptcy Before Divorce
For many, filing bankruptcy before divorce can be a challenging matter. It requires that the divorce process be put on hold while the bankruptcy process moves forward. However, this delay can prove very valuable. Discharging debt prior to divorce also eliminates one major factor that could take time to resolve during the divorce.
While both Chapter 7 bankruptcy and Chapter 13 bankruptcy are options, Chapter 7 is often preferred because it takes much less time and thus prevents a lengthy delay of the divorce.
Bankruptcy After Divorce
Dept during the divorce process, debt is divided. Sometimes, that debt may be too much to handle. In fact, with the additional costs of the divorce and the potential loss of support that may come along with the divorce, that debt could be completely overwhelming.
Bankruptcy may be an option. However, it is in these situations that the additional tangles added by the Bankruptcy Reform Act become challenging. It is also important to know that spousal support and child support obligations are not dischargeable in bankruptcy. Our lawyers are up to this challenge. We know how to move forward and help you overcome your debt after divorce.
Contact Us for a Consultation — Flat Rate Services are Available
Please contact us to schedule an initial consultation to discuss divorce and bankruptcy with an experienced lawyer. Evening, weekend and at-home visits are available by appointment.
We charge a flat rate for our legal representation in debt relief matters.