Should You Divide Debts in Bankruptcy or Discharge Them?
How will debts be divided between you and your spouse in your New Jersey divorce? This is normally a question to explore with your family law attorney. For example, he or she may explain that even if a debt is assigned to your spouse in a divorce decree, the creditor may still come after you if your spouse does not pay.
Bankruptcy, however, can eliminate debts altogether and eliminate ambiguity in many cases. During the time period leading up to a divorce, estrangement of spouses is common. Nonetheless, if each spouse is likely looking forward to a more stable future, overcoming the difficulty of working together can be worthwhile.
Can you and your spouse cooperate long enough to complete a bankruptcy before divorcing? If so, you may both be positioned to emerge from divorce with greater hope for your financial future. Your family law attorney may have advised you to consult with a bankruptcy law attorney before moving forward, to clarify essential issues regarding debts.
People sometimes approach bankruptcy law attorneys after divorce, when financial resources have been depleted through division of a household as well as through costs of divorce. However, filing for bankruptcy together before going through divorce is often more advantageous. Oliver & Legg offers free consultations at any stage: before a divorce, during divorce settlement negotiations or after a divorce.
Protecting Retirement Accounts by Filing Bankruptcy
In some cases, bankruptcy can correct a problematic result of a divorce decree. Specifically, filing a Chapter 13 bankruptcy on your own after your divorce may enable you to eliminate certain financial burdens resulting from the divorce. You may be relieved of the responsibility of transferring interest in a 401(k) pension to your spouse.
Individual circumstances vary greatly. At Oliver & Legg, we will gladly collaborate with your divorce attorney to devise and recommend to you the most beneficial course of action.
Free Consultations Talk To A Monmouth County Lawyer About Division of Debts in Your Divorce And in Your Bankruptcy
With offices in Toms River and Neptune City, our New Jersey bankruptcy attorney can advise you on what bankruptcy can do for you before or after a divorce as you consider how debts will be divided. You may request an evening or Saturday appointment. Call 732-988-1500 local or submit an email request for a consultation.