Bankruptcy Attorney In Michigan Defines Ways A Petition Can Influence Divorce Settlements
For the majorities of couples considering divorce and bankruptcy at the same time, Chapter 13 and 7 pose as the most appealing options. These Chapters allow them to reorganize their finances and get certain debts completely discharged while allowing them to catch up on other debts using a repayment plan that is court managed. It pays to work with a seasoned bankruptcy attorney in Michigan who can educate you on how your petition will affect the divorce settlements.
The family court will determine how marital debts will be shared. You may hence find yourself with new financial obligations that will lie squarely on your back. Based on your precise situation, you need to know which type of bankruptcy suits you best. Ideally, you want your petition to have the least possible impact on the divorce settlement.
Your child maintenance responsibilities cannot be discharged. In fact, your ex can pursue arrears at any time if you file under Chapter 7. This means that to recover unpaid monies, your wages may even be slashed by the courts. Filing under Chapter 13 will on the other hand offer you a chance to pay child maintenance arrears over time. You even so need to convince your ex to agree with the arrangements you suggest.
Joint debts are usually looked at closely during divorce proceedings. The courts help to determine who should settle the debts in question though the terms and conditions of the agreement between you and your lender will remain unchanged. In short, if the spouse responsible for settling these co-signed debts files for bankruptcy, the creditor can still pursue you for payments.
For example, the family courts could choose to give your ex full responsibility of paying off joint credit card debts. If he or she proceeds to file a bankruptcy petition, the lender can still come after you. In case your marriage is on the rocks and you are also battling with money problems, you must first seek counsel to find out whether it is best to file for bankruptcy before divorce or the other way around.
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.
In case the laws do not exempt the retirement funds of your spouse, you will still be safe. This is because only the share of the petitioner will be seized. The divorce order automatically gets ownership of your portion transferred to you. The settlement you are supposed to get will not be considered part of the bankruptcy estate of your former spouse.
Filing for divorce and bankruptcy is not an easy matter and there are more than a few major complexities that will be involved. It pays for you to see the full picture of how things will turn out, before you even make your first step. For you to save yourself from unwarranted headaches, choose to hire an attorney who is well-versed with bankruptcy laws, financial matters and family law.
The family court will determine how marital debts will be shared. You may hence find yourself with new financial obligations that will lie squarely on your back. Based on your precise situation, you need to know which type of bankruptcy suits you best. Ideally, you want your petition to have the least possible impact on the divorce settlement.
Your child maintenance responsibilities cannot be discharged. In fact, your ex can pursue arrears at any time if you file under Chapter 7. This means that to recover unpaid monies, your wages may even be slashed by the courts. Filing under Chapter 13 will on the other hand offer you a chance to pay child maintenance arrears over time. You even so need to convince your ex to agree with the arrangements you suggest.
Joint debts are usually looked at closely during divorce proceedings. The courts help to determine who should settle the debts in question though the terms and conditions of the agreement between you and your lender will remain unchanged. In short, if the spouse responsible for settling these co-signed debts files for bankruptcy, the creditor can still pursue you for payments.
For example, the family courts could choose to give your ex full responsibility of paying off joint credit card debts. If he or she proceeds to file a bankruptcy petition, the lender can still come after you. In case your marriage is on the rocks and you are also battling with money problems, you must first seek counsel to find out whether it is best to file for bankruptcy before divorce or the other way around.
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.
In case the laws do not exempt the retirement funds of your spouse, you will still be safe. This is because only the share of the petitioner will be seized. The divorce order automatically gets ownership of your portion transferred to you. The settlement you are supposed to get will not be considered part of the bankruptcy estate of your former spouse.
Filing for divorce and bankruptcy is not an easy matter and there are more than a few major complexities that will be involved. It pays for you to see the full picture of how things will turn out, before you even make your first step. For you to save yourself from unwarranted headaches, choose to hire an attorney who is well-versed with bankruptcy laws, financial matters and family law.
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