Divorce and Bankruptcy

Financial issues and marital problems often follow each other. Divorce can make the already complicated process of bankruptcy even more difficult to navigate.

The state of Massachusetts has below average divorce rates. However, that does not mean that divorce is any less painful in Massachusetts. No matter what state you are located in, divorce is a major strain emotionally and financially. After the trauma of going through a divorce, no one wants to have to deal with any financial hardships. However, marital problems and financial problems often go hand in hand, and, unfortunately, divorce can push individuals right into bankruptcy.

Dealing with bankruptcy immediately after dealing with a divorce is nothing less than a pain. If the bankruptcy process wasn't confusing enough already, a recent divorce only compounds the problem. With the recent bankruptcy reforms in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2012, laws concerning post-divorce bankruptcy have been altered slightly. If you have recently experienced a divorce and are considering going through this financial reorganization, it is important that you have a decent grasp on the relevant information.

One of your main concerns during this process may involve any children you and your former spouse may have had together. If you have already worked out custody and visitation agreements during the divorce process, these arrangements are not affected by bankruptcy at all, as this does not concern money. When money does get involved, it becomes a different story. Whoever is paying child support and alimony cannot get out of paying by filing bankruptcy. Any debts that are eliminated by filing for bankruptcy do not include these payments. Also, any spousal support that must be paid cannot be removed by bankruptcy.

Another area that you may be concerned with is marital property divisions. A divorce will usually lead to the dividing up of property and assets. This can also come in the form of dividing up debts. The property subject to this division is essentially all property, whether it was acquired before or during the marriage. In terms of the debt acquired from property divisions, this debt cannot be discharged if you use Chapter 7 but can be discharged if you use Chapter 13 bankruptcy. The property and debt are not always split right down the middle. The way the courts divide this is entirely on a case to case basis.

On their own, divorce and bankruptcy are both very painful decisions to make. When they are combined, though, the grief can be compounded exponentially. If you find yourself in the position where you are facing bankruptcy after divorce, the best route you can take is to stay informed. Bankruptcy laws are specific to each state. Make sure you know what bankruptcy laws Massachusetts is presently following before you make your decision.

If you are recently divorced and are struggling financially, filing for bankruptcy may be the best decision for you to make. Do not make this decision alone or without proper legal advice. At Law Office of Robert W. Kovacs, Jr., a Worcester bankruptcy lawyer is ready to team up with you. This firm seeks to instruct individuals as to how the bankruptcy process works so that they can make informed decisions about their finances. If you are looking for relief, the Law Office of Robert W. Kovacs, Jr. is the firm for you. Do not let creditors or debt collectors harass you any longer. This firm is dedicated to helping you deal with your financial problems now so that your life can get back on track. As attorney Robert W. Kovacs, Jr. is focused entirely on bankruptcy law, there is no place better suited to deal with your case. Contact a Worcester bankruptcy attorney and work with a firm that actually cares about you!