After a divorce there are usually two households, but the same amount of money to run them. A troubling situation is one in which there is less money, but the same amount of bills. Despite what you and your former spouse agreed upon in the divorce, you can be held responsible by your credit card companies for all debts in your name. Unless you are removed from the loan, you will also be responsible for the payments on any vehicles purchased through a loan under your name. A Chapter 7 bankruptcy can eliminate that debt and free up money necessary for utilities and rent.
There are certain requirements in bankruptcy for household income as well as debt limitations. Whether you are part of a married couple or freshly single can have a profound impact on you or your spouse’s eligibility to file. If there is substantial debt in the marriage it can be very helpful to meet with a bankruptcy attorney early on in the process to explore your options.
In general, it is best to meet with an attorney before completing your divorce. Dealing with debt problems can make it easier to divide assets in the divorce. If one spouse stops paying on a joint debt, it can have problems for the other spouse long after the divorce is completed. By handling your debt problems before completing your divorce, you can get a true fresh start on life.
Trish Mayer and Scott Waterman are here to help with your debt problems. Whether you have just started the divorce process or have completed it, we can help you get your debt under control. For a free consultation to discuss your debt problems, contact Waterman & Mayer, LLP, today.