Many people face different financial problems after their break out. Bankruptcy after divorce is common thing. It means that one of the spouses is not able to meet his or her obligations on different types of payments as well as paying bills and credit cards debts. Filing for bankruptcy seems to be the most efficient solution to this problem. It can provide with necessary financial relief and ability to cope with all debts and necessary payments within a single salary. In such case filing bankruptcy after divorce is required. Here are some easy tips and recommendations that will certainly come in handy.
In some situations filing for bankruptcy be one of the ex-spouse can result in cancellation of all debts. It means that all efforts to collect debt should be stopped. However this law has several exceptions which will be described further. Such procedure is also known as automatic stop.
Speaking about exceptions, first of all you need to consider the fact that automatic stop prevents creditors from collecting or demanding debts from one of the spouse. At the same time another party has a right to apply for award in his or her divorce decree. In addition there is always a chance to demand necessary financial support with the help of court. In this case your ex-spouse will be obliged to provide you with necessary payments.
Divorce Bankruptcy Support Obligations
In accordance to existing law you will be provided with divorce support without turning to bankruptcy court. For example, if you are taking care of your common child, you will be guaranteed to receive support apart from all other claims and debts. This is considered to be the main priority when it comes to bankruptcy and divorce acts. In other words such support is the main and the first point in the list of all claims.
At the same time filing for bankruptcy needs a trustee which can be determined by the judge. Trustee is necessary when it comes to domestic support. In this case you will receive a notice with full information on your ex-spouse bankruptcy discharge as well as contact details of the nearest children support department in your state to apply to.
Bankruptcy divorce and Property Settlements
Chapter 7 contains several law reforms which result in non-support obligations. It means that in some cases you will have to prove that any bankruptcy discharge of your ex-spouse will be to the detriment of your financial stability. The main idea is to provide the court with all necessary evidences that such discharge will harm you more in comparison with your ex-spouse. You should always keep in mind that if you want to collect settlement debt later, you will need to forward particular complaint to the bankruptcy court. Otherwise you are likely to face the situation when this debt will be simple wiped out. In addition you should also note that the way how court is going to determine what debts are related to property settlement and what are connected with support obligations depends on laws of particular state.
Divorce and Bankruptcy Processing
Those ex-spouses who are indicated as debtors according to bankruptcy petition will receive a notice which is usually sent by a bankruptcy court. This notice includes detailed information about precise time and date when you are going to hold a meeting with the creditor. You will also be provided with the deadline which is determined for sending a claim with evidences that you do need bankruptcy discharge. This is high time to look for a professional and experienced bankruptcy lawyer. Pay attention to the fact that receiving such notice does not mean that you need to fall in despair. You have a right to protect yourself.