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Filing for Bankruptcy During Or After A Divorce

Written by on February 02, 2016

It probably is surprising to know that it is not at all uncommon for a person to file for bankruptcy shortly after a divorce. Child support payments get set up for parents following a divorce and they can often times be difficult to keep up with. Also following divorce, individuals are faced with paying for a full set of bills with one person’s salary and wages instead of two. Debts and credit card payments can also be difficult to keep with on only one salary.

When a couple goes through with a divorce, not only does this include the dissolution of the marriage but it also includes agreements of financial settlements, obligations, lawyer and court fees, and who is to take responsibility of debts.

What Happens If A Spouse Files For Bankruptcy During A Divorce?

It definitely gets a little complicated if a spouse files for bankruptcy in the middle of a divorce. While the family court will still hear and decide on establishment of support, they are required to wait until permission from the Bankruptcy Court is received in order to split up alimony including the family home, any stocks, funds, and pensions. Going through divorce at the same time as filing for bankruptcy can be confusing and scary. It is essential that you contact a Fort Wayne divorce lawyer with experience in divorce and division of assets.

For example, if there is property that becomes yours after a divorce within six months of filing for bankruptcy, that property can potentially be taken by creditors. Timing must be greatly taken into consideration in order to end up with the best possible outcome.

Do Fort Wayne Child Support Payments Stop If An Ex-Spouse Files For Bankruptcy?

You may be wondering if an ex-spouse can get out paying child support or alimony if they file for bankruptcy. Basically, any child support or alimony payments cannot be eliminated by bankruptcy. While other payments and debts and foreclosures can be blocked by something called an automatic stay, child support obligations have priority and are not forced to be halted. These payments, in legal terms, are considered “not dischargeable”.

Top Fort Wayne Family Law Lawyers Can Help Your Situation

Both divorce and bankruptcy are two separate legal matters and it is essential to get both of these to work in your favor for the best possible outcome. With the help of our experienced divorce attorneys, we can help you with your divorce matters in figuring out when is the best time to file for divorce. If you have any questions about these matters or any other family law legal matter, please contact our office at 260-428-2214 today or fill out our online form for a consultation.

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Contact The Bellinger Law Office in Fort Wayne, Indiana, to learn how we can provide you with legal representation tailored to your precise needs. We listen to your concerns, learn about your case and act decisively to protect your rights. Call 260-428-2214 to learn how attorney Robert Bellinger can advocate for you. Or complete the intake form below to get started.

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