It is no secret that many couples divorce because of the stress associated with financial issues. If you and your spouse have decided to separate and have concerns about debt division in divorce, our Hendersonville divorce and bankruptcy attorney can help.
At the Law Offices of Eric K. Fox, we assist couples who have already reached an agreement on major issues such as property division and custody. For many couples, their debt load is too much for either one of them to manage. After you separate, a pre-divorce bankruptcy can help both spouses start fresh. We will work with you to find options for your future.
For couples considering a divorce in Tennessee, there are three main issues that need to be decided in order to finalize the legal paperwork, including:
- How to divide the property owned by the couple;
- What arrangements will be made regarding child custody and visitation;
- How will you divide or allocate the marital debt.
If you and your spouse have resolved the issues of property and child-related issues, looking into the benefits of a joint filing for a Chapter 7 bankruptcy can greatly simplify the decisions that need to be made. If you, as a couple, file for a Chapter 7 bankruptcy, your debts will be discharged and neither spouse will be responsible for the debt following the divorce.
If a Chapter 13 bankruptcy is the solution for your debt, we can help you structure the repayment plans in such a way that will benefit you as a couple. For both a Chapter 13 bankruptcy and a Chapter 7 bankruptcy, it is important to note that the qualifications for these options is based on income and household size. Filing a bankruptcy prior to the divorce may make it more likely that you can qualify for the discharge benefits of a Chapter 7, rather than the repayment plan under a Chapter 13 bankruptcy.
If you have recently divorced and you or your ex-spouse is considering filing for bankruptcy, there are several important factors that you should be considered. For example, child support payments and past-due child support cannot be discharged in bankruptcy. In most cases, spousal support is another type of debt that will remain even after a bankruptcy proceeding.
Another consideration is the question of what happens if your ex-spouse files bankruptcy on debts that were divided during a divorce. If your name is still on the loan papers, you can still be held responsible for the full amount of the debt — even if your ex-spouse has the debt discharged as part of a bankruptcy. This is because the lender was not considered a party to your divorce case and therefore does not have to stop collecting from both spouses if the debt is in both names.
If you have questions about a post-divorce bankruptcy issue, we can help you sort through the issues and develop a strategy to help protect your rights.
Contact a Hendersonville Divorce and Bankruptcy Law Firm
If you are concerned about how your divorce may impact a bankruptcy, contact our Hendersonville bankruptcy and divorce law firm to schedule your free initial consultation with lawyer Eric A. Fox today. We can be reached toll free at 888-808-7604 or locally at 615-338-5291.
We are located in the Hazel Path office complex and offer free parking near the lake, off Main Street. Our office hours are Monday through Friday from 8:30 a.m. to 5:00 p.m., with evening and weekend appointments available upon request.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.