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Finding debt relief after a divorce through bankruptcy

On Behalf of | Oct 8, 2016 | Chapter 7 Bankruptcy, Firm News

When Florida couples divorce, each party will typically assume a portion of the marital debts. Doing so could put you in a precarious financial position. Fortunately, it may be possible for you to find debt relief through bankruptcy.

The primary question for each Florida resident in this position is whether it would be more advantageous to file before or after the divorce is finalized in order to receive the maximum benefit from filing. Sitting down with a bankruptcy attorney when you decide to file for divorce could help answer that question. In many cases, filing as a married couple could benefit both parties, but sometimes, that is not an option due to the circumstances.

When negotiating a divorce settlement, each party will generally assume responsibility for certain debts. If you wait to file for bankruptcy until after the divorce is finalized, it is important to note that just because your then ex-spouse assumes a debt does not necessarily mean that it will get paid. Creditors are not bound by what the divorce decree says, so it will be necessary to list all of the marital debts regardless of who assumed responsibility. You also need to be aware that alimony and child support are not subject to discharge.

Going through a divorce is challenging enough without worrying about the debt with which you will walk away. Many people who divorce look to bankruptcy as the best debt relief option. Starting a new life after a divorce does not have to mean that you will be in financial distress.

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