Bankruptcy And Divorce In Florida
Financial problems are at the root of many failed marriages. If you and your spouse have accumulated more debt than you can pay off, and if you have also decided to end your marriage, it is imperative that you get experienced legal counsel to protect your post-divorce financial future.
The Davies Law Firm, LLC, in Orlando, Florida, can provide experienced legal guidance regarding bankruptcy and divorce in Florida. By working with a knowledgeable family law attorney who is also experienced in bankruptcy law, you can preserve many, if not all, of your assets while lessening or eliminating your debt.
Filing for personal bankruptcy, either Chapter 7 or Chapter 13, can be an effective method to preserve assets while managing the impact of a divorce.
Filing Bankruptcy During A Divorce
There are two common scenarios in which one spouse filing for bankruptcy could produce dire consequences for the other.
In the first scenario, if you have filed for divorce and your spouse then files separately for bankruptcy, your community debt could be discharged only in your spouse’s name. A creditor could still hold you responsible for the debt.
In the second situation, if a spouse files bankruptcy after the divorce and discharges debt that he or she agreed to take on in the divorce decree, a creditor is not obligated to follow the divorce decree and could hold you responsible for the debt.
Of the things that get sorted out in a divorce – property division, child custody, and spousal and child support – the automatic stay in bankruptcy will stop any property division. It won’t, however, stop the determination of child custody or the payment of support. If you file for bankruptcy before the property is fully divided up, that process will go on hold for a while. Since the determination of property rights includes the payment of debts, the bankruptcy will often help resolve some of those issues.
As a divorce attorney with experience in bankruptcy, Ms. Davies can help you assess your financial situation and determine whether or not bankruptcy is necessary. If the timing is not considered carefully, a divorce proceeding can be significantly delayed and the settlement (including property division and alimony) can be severely hampered.
If you marriage is ending, the best idea may be to straighten out your finances as well before you begin your post-divorce life. Call 407-540-1010 or email us to schedule a free consultation with an experienced bankruptcy and family law lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.