San Jose Bankruptcy Attorney explains how bankruptcy may benefit couples filing for divorce.
San Jose Bankruptcy Attorney explains how bankruptcy may benefit couples filing for divorce.
The current economic downturn is affecting many couples considering filing for divorce in ways they had not expected. The real estate and investment assets they hoped to share in a division of property settlement may have dramatically shrunk in value, and the debts they have incurred may be much larger than they anticipated. All of this means that your bankruptcy attorney will be extremely valuable as you consider your divorce proceedings.
In a community property state such as California, the debts of a couple will be shared as equally as the assets. That means couples with heavy debt loads may want to consider a bankruptcy filing to clear out the debts before they file for divorce. A Chapter 7 bankruptcy filing can clear out a large unsecured debt load. A Chapter 13 bankruptcy filing may allow a couple to reduce their debts and save their home from foreclosure. An added benefit of the bankruptcy filing may be that the debt removal may make the divorce process much less contentious.
A joint bankruptcy filed before divorce proceedings is also less expensive than two separate bankruptcy filings, and eliminates the possibility that one of the spouses may later file for divorce and the creditors may pursue the full repayment from the divorced spouse. This can be prevented by use of indemnity clauses in the divorce decree that a bankruptcy judge may consider if you are forced to repay debts after a divorce decree is granted
Your divorce attorney can help you structure a settlement that can guard against a former spouse ruining your credit rating by failing to repay debts. Consulting with an experienced bankruptcy attorney will make that process much smoother.
If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. 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 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
