A Pending Divorce and Chapter 13 Bankruptcy

It may seem like a Chapter 13 bankruptcy would go hand-in-hand with divorce proceedings since a permanent separation like this can mean financial hardship for both partners. Shouldn’t you try to use the lawyer you currently have to kill two birds with one stone? Plenty of people who are in debt end up getting divorced and don’t know what to do about it. With Chapter 13 bankruptcy, you won’t have to worry about paying off your debts for two to five years. Financial decisions that are part of the divorce will also be affected when going to bankruptcy court. You may be wondering if it’s in your best interests to file for Chapter 13 bankruptcy while in the middle of a divorce.

The first drawback of doing so is that the court will issue an automatic stay order. In addition to your divorce action, this order will put on hold all lawsuits from your debtors. Because of this, your divorce can be put on hold indefinitely until the bankruptcy court issues another order saying it’s okay to proceed. Also, the court will have the power to review all agreements you make in divorce court.

You’re mistaken if you’re like people who think you’re unable to file for Chapter 13 bankruptcy during a divorce. Of course, this is never going to be the most opportune time to file bankruptcy, not while you’ve got everything to deal with involving your divorce. Just keep in mind that until your bankruptcy case has been resolved, you won’t be able to complete your divorce.

Once your divorce has been finalized, the payment plan established by the Chapter 13 bankruptcy will remain in effect. This means that the divorce settlement will need to address this and state how the payments will be made and by whom. This is just something else for you and your soon-to-be-ex to argue about potentially.

Filing for Chapter 13 bankruptcy during a divorce is legal, but it will just add more complications to your life. The wise move is to know the implications of filing two concurrent suits before you make any decisions. Doc No. rjslhssld-sdg

Kristie Brown writes on a variety of topics from health to technology. Check out her websites on save my marriage and stop divorce

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