How Does Bankruptcy Affect Divorce?
Dealing With Financial Troubles During Divorce
Going through a divorce is expensive, even if your divorce is uncontested. Dividing households means your bills may be larger. You may have to pay child support or now be the primary support for your children. You may have to give up important property or have to pay a divorce settlement or spousal maintenance. If you are already in financial trouble, you may need to consider bankruptcy as an option to deal with your debt.
Todd Dwire, of Dwire Law Offices, P.A., in Lakeville, Minnesota, will review your financial situation as it relates to asset division and may suggest consulting with a bankruptcy attorney. His goal is for you to have the best situation going forward from your divorce. If discharging your debt is a viable option, he will work with you and the bankruptcy lawyer to determine how to proceed.
Bankruptcy and Divorce Issues
For some people, money issues are the root of their marital problems. For others, they may have debt, separate from their marital debt, which they can never repay.
If your debt is marital debt, you and your spouse may want to consider filing for joint bankruptcy. This can be done while the divorce is in process but will prevent the divorce from being final until the bankruptcy is discharged. Getting rid of your debt will allow both of you to go forward with a clean slate.
If you are the one in serious financial trouble, you can file bankruptcy on your own. You should know that child support and spousal support are not dischargeable in bankruptcy. You will still be responsible for them after your debt is discharged.
We will look at your financial situation and advise you on whether bankruptcy is something you should consider. If it is, we have bankruptcy attorneys we work with and can recommend you to.