Divorce and Bankruptcy in Chicago
Filing for Bankruptcy after a Costly Divorce
When married couples divorce, they often find that they are facing entirely different financial situations. Where they may have previously relied on two incomes, they may now find that their expenses need to be paid based off one income. This can be particularly difficult if one spouse earned little to no money and was primarily a homemaker. They may also face added complexities from child support or spousal support arrangements or agreements regarding the division of property, assets and debt. It is therefore no wonder that bankruptcy sometimes follows divorce, and vice versa.
Are you currently going through a divorce or are you recently divorced? Are you considering a divorce and also bankruptcy? A Chicago bankruptcy attorney at the Law Office of Marc Wagman, LLC can offer you helpful information and guidance. It is crucial that you obtain information about how your divorce may affect bankruptcy or even how your spouse or ex-spouse's filing for bankruptcy may affect you. A lawyer at my firm can conduct an initial analysis of your financial situation and your divorce to offer you applicable information that enables you to make the
right choices about your case.
Allocating Shared Debt During a Chicago Divorce
Along with the rest of your shared property, all debt that was incurred within the scope of your marriage must be divided during a divorce, as well. The allocation process will be handled either between you and your former spouse or at the mercy of the court – depending on whether you are undergoing a contested or uncontested divorce. In any case, however, it is important to understand that this debt will still be considered "shared" even after your divorce has been finalized. This means that creditors can turn their collection efforts on you if your ex-spouse fails to repay the debt that they were left with in the divorce.
If you choose to pay off the debt, however, you would have the right to pursue reimbursement from your former partner – as they would have technically violated the terms of your divorce decree. Should they refuse to pay you the money that they subsequently owe, you may be forced to set aside even more money for the costs associated with taking the matter to court. For this reason, it may be in your best interests to file for bankruptcy before legally ending your marriage, as this would effectively give you both a clean slate before undergoing an already costly process. To find out if this course of action could be right for you, contact a Chicago bankruptcy lawyer at our firm.
Child Support & Spousal Support Payments
A key issue to consider when filing for bankruptcy is what debt can be discharged. You cannot discharge past-due child support or spousal support payments. In discharging other debt through bankruptcy, however, you may find that you now have the money to pay the support called for in your divorce agreement. Filing for divorce and filing for bankruptcy are both big decisions. Getting knowledgeable guidance in either of these matters may make all the difference in your ability to build a more secure financial future for you and your family. For this reason, you should not hesitate to consult with a Chicago bankruptcy lawyer from our firm as soon as possible.
Speak to Our Chicago Bankruptcy Attorney Today
If you are interested in filing for bankruptcy before undergoing a divorce or you have been struggling to maintain financial stability after legally ending your marriage, there is no better time to take action than now. With the help of a knowledgeable legal professional from The Law Offices of Marc Wagman, LLC, you can get started on figuring out which debt relief solution is right for you. Take the first step today by filling out a free bankruptcy evaluation online.