Chapter 13 Bankruptcy And Divorce
When you file for Chapter 13 bankruptcy, it means that you are reorganizing yourself financially to pay of your debts and you are letting the court decide how you should be making your debt payments. Some of the debt may be written of partially and the court will see how much you can afford to pay off and in what time line. |
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However, a bankruptcy case along with a divorce case complicates matters to the core. It also depends on what kind of bankruptcy plan you are opting for. If it is Chapter 13, the process is going to take much longer for the bankruptcy case to be ruled. That is why you should either file for bankruptcy first and then divorce, or the other way around. However, both are time consuming processes and if you are in a bad financial position then you may have to do both.
When it comes to making payments first of all the debts are examined. All the debts incurred after marriage and in a joint relationship are examined. For example, the credit card purchases that are made after the date of marriage are examined and both the spouses are held liable for it. So, in case of a divorce, both spouses are held equally responsible to pay off the debts. In case you are filing for bankruptcy individually, then this complicate matters further.
A lawyer will be able to guide you in the right way. So you should consult someone who can give you the best advice. In case of divorce, filing for Chapter 13 may not be the best option.
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