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What you should know about Chapter 7 debt relief and divorce

On Behalf of | Apr 5, 2018 | Chapter 7 Bankruptcy, Firm News

Most Florida residents understand that changes in life often include those having to do with finances. Any number of issues can impact one’s financial status but a particular instance with a potentially substantial impact is divorce. Some people mistakenly think they can accept debt in settlement, then try to discharge the debt through a Chapter 7 bankruptcy debt relief process. 

The more you research and understand ahead of time, the less obstacles you are likely to encounter concerning your potential financial situation following divorce. For instance, it’s critical to understand that it is unlikely that a financial liability you accept as part of your settlement would be dischargeable through Chapter 7. Rather, the court may consider it as a form of alimony, which is not dischargeable.

If your spouse is the one accepting responsibility to pay  specific debt, you’ll want to make sure your own name is no longer attached to the debt before the court finalizes your divorce. Otherwise, creditors may continue to contact you to attempt to collect even if your spouse has agreed to make the payments. Overall, it’s always a good idea to discuss debt relief, or pursue bankruptcy measures if warranted, before divorce proceedings begin.

The Law Office of Paul L. Urich, P.A., in Florida, understands the impact of financial crises on divorce. It’s also understandable that you would want to explore any and all debt relief options available when needed. By requesting a consultation, you can take the first step toward a solid solution and obtain guidance to help you plan for a stable, post-divorce financial future.  

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