Did Your Expensive Divorce Bankrupt You?
Divorce, especially the hotly contested, expensively litigated kind, can drain an individual’s or family’s finances right away. Along with exorbitant medical debt and credit card bills, divorce is considered a major reason for many consumer bankruptcies.
If this situation rings true with you, and you are seeking debt relief after the end of your marriage, you should speak with our versatile divorce and bankruptcy attorneys at Dorothy Bartholomew, PLLC in Fife, Washington.
Dorothy A. Bartholomew is a respected bankruptcy lawyer who knows Chapter 7 liquidation and Chapter 13 debt reorganization strategies inside-out. She has shown thousands of clients the path to a sound financial footing, regardless of the reason for serious money worries.
When Bankruptcy Leads To Divorce
This is most common in a Chapter 13 situation, when the stresses of an ongoing bankruptcy degrade the relationship.
The outcome: the case can be “bifurcated” for a fee, and both parties go on their separate ways, continuing to pay on a portion of their new separate bankruptcies. (Yes, you can get divorced while in bankruptcy and you do not need anyone’s permission, but if you remarry, then the new spouse’s income may come into the equation.)
When Divorce Leads To Bankruptcy
The end of a relationship typically has debt. Usually the debt is divided pursuant to a decree of divorce and then unbeknownst to the other, one ex-spouse chooses to file bankruptcy after the divorce. Usually they cannot realistically pay the ordered debt.
The most common concern is that the client does not want the ex-spouse to have to suffer as a result. Unfortunately, choosing to file a bankruptcy may have that adverse effect on the non-filing ex-spouse because the unpaid creditor will try to recover from the marital partner. Marital debt is typically incurred for the benefit of the community; therefore, both parties are liable.
The outcome: In the end, both parties end up having to file bankruptcy, either separately or together. Typically it is less expensive to get it done while still married, then divorce.
The Decades Of Experience That Can Bring You Back
Recent divorcees struggling to keep pace with all manner of debt, including mortgage and motor vehicle payments, should take heart in bankruptcy law’s ability to:
- Discharge and liquidate consumer debt, promoting a “fresh start” (Chapter 7)
- Reorganize debt for affordable repayment plans (Chapter 13)
- Keep harassing creditors at bay, thanks to the “automatic stay”
- Stop court-ordered garnishment of income
- End auto repossession efforts
- Allow continued possession of certain assets (property exemptions)
Ms. Bartholomew and associate attorney Jada Wood excel at formulation of customized debt relief plans that address specific economic issues. You also receive valuable information about bankruptcy myths, credit repair and how your life after bankruptcy will look. This leadership is delivered with attentive personal service and timely responses to any sudden questions.
Meet Our Skilled Divorce And Bankruptcy Lawyers In Fife
We think you’ll be impressed by the comfortable, confidential atmosphere we insist on for your initial consultation at our Dorothy Bartholomew, PLLC law offices. Call us today at 253-458-4238 or reach us by email. “Puppy helpers” are standing by to keep your pet company at our dog-friendly headquarters.