Bankruptcy with Divorce is Very Common
When a marriage ends there are many things to consider. The routine of the family changes including how bills are going to be paid for various debts that may have been picked up during your marriage. Money is the number one stress both before and after a divorce.
In fact, for this reason, it is not uncommon for someone to file for bankruptcy after a divorce. This is because debt problems are not solved with a divorce decree. In reality, you can divorce your spouse but you cannot divorce their debts incurred during your marriage.
That is correct, both spouses are held responsible for the debts incurred during the time that they were married. Yes, the divorce will divide up the debt equally but your divorce is just an agreement between you and your ex. Your divorce does stop the credit card company or mortgage lender from trying to come after both of you for payment.
This means that if your ex-spouse does not pay his or her share of the debts then the creditor will come after you for payment. This also means that if your ex files for bankruptcy after the divorce, the creditors will look to you to also pay his share of the debts. If you were barely able to pay your bills before your ex-spouse files bankruptcy on his share of the loans it could send you quickly into bankruptcy as well.
Filing Bankruptcy Before Divorce
For this reason, many couples will file for bankruptcy before getting divorced. When you know a divorce is on the horizon, filing for bankruptcy before divorce might be one of the smartest decisions you make.
You and your spouse will need to work together to some degree to accomplish this. However, so long as your relationship has not deteriorated to the point where you can’t communicate with each other Bankruptcy in Clark County is not an overly complex solution.
The prospect of having bill collectors come after you for the debts that your spouse was supposed to pay can create a great deal of stress.
If you are concerned that your ex will file for bankruptcy you should speak with a Lawyers Plus attorney right away. It is important that you protect yourself. For example, you might be able to obtain a lien on some of your ex’s property to help make sure that you don’t get stuck paying his or her share of the debts.
Filing Bankruptcy After Divorce
After divorce it can be common to feel like your money is not stretching as far as it used to. For this reason many look to speak with a reputable bankruptcy attorney.
Bankruptcy can help you relieve the load of your debts after a divorce, however, there are a number of things that bankruptcy cannot do for you after a divorce. Here are obligations that bankruptcy after divorce cannot help you with:
• Cannot avoid court ordered alimony.
• Cannot avoid court ordered child support payments.
If your ex is filing for bankruptcy rest assured knowing that he or she will still be legally responsible for these payments when their bankruptcy is final.
Is Bankruptcy the Solution?
Filing for bankruptcy may be a solution to solving your debt problems before or after divorce. However, there are many factors that you should consider when doing so. If you are interested in going down this path be sure to speak to one of our highly qualified Las Vegas bankruptcy attorneys. We can help you make the right decisions and advise you on how bankruptcy will affect marital debts, child support and alimony payments.