When it comes to marriage and bankruptcy or divorce and bankruptcy, several key questions often emerge.
- If your marriage is fine but your finances are not fine, do both spouses have to file bankruptcy? Is it possible for one to file but not the other? Are there advantages to filing together as opposed to just one spouse filing?
- If your marriage is on the rocks and you anticipate divorce in the near future, is it better to file bankruptcy before or after the divorce?
- Are you responsible for debts incurred by your spouse during the marriage — even debts you did not know about or co-sign for? What about debts that your spouse incurred that involved overt waste of marital assets such as taking a trip to Las Vegas with an extramarital love interest? Are you responsible for those credit card debts?
- If you are already divorced, how will unpaid back child support or spousal support be managed in your bankruptcy filing?
Your particular circumstances are unique, yet you may recognize your situation in one or more of these descriptions of typical financial issues associated with marriage or divorce and bankruptcy.
The best way to get answers that pertain to your circumstances is to talk to an experienced bankruptcy lawyer with detailed understanding of matrimonial law. At the law offices of Genova & Malin, Attorneys at Law, you will have access to an attorney who is also a bankruptcy trustee. Our years of experience enable us to apply our thorough legal knowledge to individual situations.
Key points to consider regarding marriage, divorce and bankruptcy include the following:
- In marriage, it is not mandatory for both spouses to file together. Special circumstances such as an inheritance or a business owned by only one spouse may indicate that it is more advantageous for just one spouse to file.
- Child support and alimony cannot be discharged in bankruptcy. However, arrearages of unpaid support payments may be included in a debt reorganization plan in a Chapter 13 bankruptcy. You can stay out of jail, keep your driver's license and passport, and repay back child support and spousal maintenance over a three- to five-year period through Chapter 13 bankruptcy.
- Credit card debt accumulated during a marriage is normally the responsibility of both spouses. However, in a divorce, a family law judge may order one spouse or the other to pay certain debts or otherwise balance the ledger by awarding property to a spouse.
- The recommended timing of divorce and bankruptcy is likely to depend on whether your spouse is cooperative or not. It is usually simpler and less expensive for both spouses to file bankruptcy. Filing together while postponing divorce until the bankruptcy is complete may be advisable if you can cooperate for the sake of your common good.
Discuss Questions of Marriage, Divorce and Bankruptcy With a Knowledgeable Attorney
Contact Genova & Malin, Attorneys at Law, near Poughkeepsie, New York, to schedule a free consultation regarding questions you have regarding marriage or divorce and debt relief through bankruptcy.
