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How Do You Cope Bankruptcy After Divorce

It is rather important to mention the fact that many individuals experience such an unfavorable financial situation after they go through the process of divorce. In some cases, the family itself, that is the couple has an income that would allow them to maintain one household but if they are splitting it two, they themselves are not in a position to make both ends meet. Sometimes, the costs of the divorce arrangement made are so unbearable that they cannot be sustained … If you prefer to seek bankruptcy after the divorce, our firm can guide you through the process.

If you find it challenging to meet the payments, it is recommended you seek the assistance of a qualified bankruptcy attorney to help you with the legal processes of your debt management plan. More specifically, at the Ferguson & Ferguson Law Firm, we have successfully assisted several individuals sort out various financial issues that arise from divorce.

Automatic Stay After Divorce

The advantage of bankruptcy after Divorce is that it will stop any calls from creditors and any possible legal action against the debtor. It is a common thing to have some debts at the time of the divorce or after a divorce has occurred. With that debt, you may find loud phone calls from third-party collection companies, creditor harassment, and potential lawsuits. In the extreme, it may get to a level where you are facing home foreclosure or car repossession. There is an escape hatch, however: bankruptcy after divorce.

Furthermore, in cases where you file for bankruptcy after divorce, the outcome will be an automatic stay that remains in force for some time. Automatic stay completely halts all sorts of collection activities such as calls, lawsuits, foreclosures, and repossessions that are pending on the debtor. When a creditor decides to call or threaten you again the next time, you should give them your bankruptcy case number and the phone number of your attorney.

This popular post examines the various kinds of financial obligations that one can remove via insolvency after a divorce. There are remedies that one can adopt to eliminate or at least control most of the debts after divorce through bankruptcy. Some or most of the loans could have been contracted before the divorce and shared between your spouse and yourself but after the divorce some of them could have been transferred to your name. Most of it can be done through Chapter 7 or Chapter 13, if the homeowner files for bankruptcy.

You can discharge most of the following types of debt through bankruptcy after divorce:

  • Credit card debt
  • Collection agencies or accounts also refer to debts in which credit collectors have been used to recover the amount lent
  • Medical debt
  • Personal loans
  • These include unpaid bills and subscriptions like electricity, water, gas, and other home utility bills that are unpaid for some time now
  • Items which have been returned or are known to be bad (except where stop payments have been made fraudulently)
  • Debts that are really personal such as student loans where one can be discharged in cases of undue hardship
  • Repossession deficiencies again, these balances are on the condition that the subject has the authority or has been authorized to repossess the secured assets due to the borrower’s default or failure to pay the obligations
  • Personal injury claims
  • ME: Some debts from businesses Some debts are owed to businesses Other debts can be owned by business partners
  • Archived rent and any other bills that arise from lease-based contracts
  • Civil court orders
  • Any taxes that are not paid during the period and which have advanced a certain number of years
  • Tuition and other charges antecedent to attorneys
  • Charge accounts

Where you opt for Chapter 7, then it will be an open path since many of your debts will be wiped out. Chapter 7 is sometimes referred to as the liquidation bankruptcy. The different types of bankruptcy will help to compile all the debts and it will erase all the debts completely. You might have to part with some of your asset in order to meet the repayment of your credit balances. Of course, the federal bankruptcy code said that most of your properties will be disregarded in the bankruptcy. Speak to a lawyer to determine the effectiveness of a chapter 7 bankruptcy after divorce.

Chapter 13 bankruptcy will give you a payment plan to allow the discharge of part of the debts under three to five years. Chapter 13 is often referred to as a ‘reorganization bankruptcy.’ For your debt, you will find that you can restructure it and pay maybe in a payment plan that you will be able to manage for a longer period. Like it is also possible to pay some of your debts after bankruptcy after divorce have been concluded.

Author Bio: Justin William, a dedicated Garden City personal injury lawyer, has over 15 years of experience advocating for accident victims. In his free time, Justin enjoys gardening and hiking, which reflect his commitment to balance and well-being both personally and professionally.

Michael Lee, Esq.

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