Sacramento Bankruptcy Attorney discusses the Impact of Divorce on a Bankruptcy proceeding
Sacramento Bankruptcy Attorney discusses the Impact of Divorce on a Bankruptcy proceeding
You’re in the middle of a divorce, and just when you think things can’t get any worse, the economy crumbles and you are forced to consider filing for bankruptcy. If you are considering filing for a Chapter 7 or a Chapter 13 bankruptcy proceeding, it is important to understand the impact filing will have on your financial obligations resulting from the divorce proceedings. A divorce generally creates two categories of financial obligations: the obligation to support your children and your former spouse; as well as the obligation created by the division of your marital property. The bankruptcy court primarily only deals with debts that you have at the time you file your petition for bankruptcy. Marital settlement agreements often create financial obligations that mature at some point in the future, which may be after the date you file for bankruptcy. If you are the higher wage-earner, filing for bankruptcy will not discharge your obligation to pay your child and spousal support obligations, but you may be able to discharge some of your financial property obligations. By the same token, if you are the spouse receiving spousal and child support and are considering bankruptcy, you are still entitled to receive payment from your former spouse. Most likely, all of your support payments would be off-limits or “exempt” from your creditors. You should also be aware that if you are going to be receiving a property settlement as a result of a divorce within 180 days of filing for bankruptcy, that your property settlement may become property of the estate.
If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 13 bankruptcy, lien stripping, discharging debt, etc. we can help! We have bankruptcy attorneys in San Mateo, Fremont, Sacramento and San Jose.
