For many people, divorce and bankruptcy may be the most stressful and overwhelming times they ever encounter. When both are or could occur at the same time, Florida couples may be even more overwhelmed and confused about their future. It is important to know how a divorce may affect the process of filing Chapter 7 bankruptcy.
When Chapter 7 bankruptcy is filed and approved, certain debts are discharged. However, those in the midst of divorce should be aware that child support and alimony are not debts that can be discharged like credit card or other debts. Before filing and knowing a divorce is imminent, it is important to know how debt will be divided and what can be discharged.
The assignment of debt can be part of a divorce settlement. It is important that everyone, including creditors, are clear about who is responsible for what debt. If a creditor is seeking resolve of a debt and your name is attached to it still, you can still be held liable for it. This can greatly impact the credit rating, which can be particularly harmful to a person who is just starting out after a divorce.
Before Chapter 7 bankruptcy is chosen as the best option for a couple moving toward divorce or a couple thinking about divorce, paying down or paying off any debts possible is advised. The division of property and a divorce settlement in general can be affected by the status of debt between a couple and that couple’s plan to deal with that debt. Our firm can help provide up to date information regarding the facts about divorce and Chapter 7 bankruptcy in Florida on our webpage.
Source: urichlaw.com, “Florida Divorce & Bankruptcy Attorney“, , Sept. 16, 2014