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Bankruptcy and divorce
Financial issues are often a major factor in a couple getting divorced. They can certainly have an influence on how two people get along. After a divorce, those financial issues can also affect a person’s ability to perform his or her obligations under their property settlement agreement and divorce decree.
If you’re drowning in debt and need a life jacket, you’ll probably want to contact us for a free bankruptcy consultation and evaluation. We’ll listen carefully to you, and then we’ll give you our opinion on whether a discharge bankruptcy might be a viable financial alternative for you.
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A bankruptcy and a divorce will have overlapping issues, but both of those cases can’t be heard in the same courtroom. Divorces are heard in state courts, and bankruptcies are heard in the federal courts. For somebody who is going to get divorced anyway, it would probably be better to have their bankruptcy case over and done with before they even file for a divorce. Here is just one example why.
You and your spouse have a joint credit card. Your spouse ran up a $10,000 balance on that card. You charged nothing on it, and when you learned about that debt, that was the straw that broke the camel’s back. You file for divorce. The divorce decree makes your spouse solely liable for that debt, and he or she has acknowledged that. Two years after your divorce is over, your spouse loses his or her job, goes into default on the credit card and files for bankruptcy. Suddenly that creditor is knocking on your door looking for $10,000 plus interest and late fees. Regardless of the fact that the divorce court already ruled in your favor on that credit card, you’re still on the hook. That’s called joint and several liability. The credit card company is simply going to argue that it wasn’t a party to your divorce, so its rights against you remain intact. That’s just one of the issues that can come back to haunt you if you get divorced before you file for bankruptcy. Other important issues can arise too like a foreclosure.
Contact a Los Angeles Bankruptcy Lawyer today
Going through a divorce can be stressful enough. If insurmountable financial issues are coupled with the breakdown of a marriage, you’ll likely want to talk with us first before you file for a divorce. A fresh financial start is as important as the dissolution of the bonds of matrimony. Feel free to contact us by phone or online to take your first step toward a new start.
We assist people with bankruptcy in the following areas and counties of California:
- Los Angeles County
- San Fernando Valley
- Orange County
- San Bernardino County
- Riverside County
- Ventura County
- Santa Barbara County