Divorce and Bankruptcies: A Delicate Balance

Divorces are based around the division of assets and liabilities between two married people. It can be expensive and result in bankruptcy for participating parties, which makes things more complicated.

Filing for bankruptcy before or after your divorce can simplify the process. If you do it before, you can save a lot on court fees if you do a joint application. Plus, since you’re both bankrupt, you’ll have less assets and liabilities to apportion during the divorce. Filing for bankruptcy can also protect some of your property from being sold off for debt payments, though you may need to talk about how that property will be affected by the divorce.

Your First Meeting With a Bankruptcy Attorney

Filing for bankruptcy could be very complicated for someone who is not familiar with bankruptcy law. You might have decided to hire a bankruptcy attorney for this reason. While these attorneys are well versed in everything that has to do with bankruptcy, they can only do so much if their client does not provide them with all of documents they will need on their first meeting. Here’s a list of the essential paperwork you need to bring.    

        1 .       Originals and copies of financing documents. These documents should already be stowed away safely in a secure spot in your home. You need your loan agreement, insurance policies, title policies, deeds of trust, mortgages, security agreement and other like documents.

       2.       Names and contact information of guarantors, creditors and representatives of financial information. Your lawyer might need to talk to them as well so be sure to compile a list of these people beforehand and bring it to your meeting.

Collaborative Law Enables Amicable Divorce

Divorce is often associated with battling ex-spouses who have to resort to airing their “dirty laundry” in court to get the settlement they want. This does not always have to be case, however, and divorces don’t have to be acrimonious.

Through collaborative law, divorcing couples can resolve their differences without the court having to intervene. This involves both parties being represented by their own divorce attorney in Orlando. After each spouse provides all relevant information, such as annual earnings, both sides engage in negotiations over child custody and the like. Once a settlement is reached, the agreement is presented to the court, which then executes the terms and conditions.

Understanding Bankruptcy and Its Effects

Taking out a loan or financing is a widely accepted norm. In fact, credit card debt, auto, student loan and mortgage debt rose significantly in 2014 compared to the previous years. This fact also shows the potential number of people who might have problems paying back their debts. For many who have exhausted ways to do so, they can resort to filing for bankruptcy.

Bankruptcy is the process of eliminating or repaying a portion or a whole debt under the protection of the federal bankruptcy court. It can be accomplished either by liquidating a debtor’s property or by reorganizing the repayment agreement. These options are elaborated in Chapter 7 and Chapter 13 Bankruptcy. The court shall decide which should resolve a debtor’s financial obligation.

The Bankruptcy-Divorce Connection

Studies show that since 1997, there has been an increase in bankruptcy filings in the U.S., which are completely unrelated to business. In fact, financial problems are some of the main reasons for getting divorce in the country. If you find yourself facing both bankruptcy and divorce, you should consult an Orlando divorce attorney who is also adept at bankruptcy cases to know how to proceed.

Which Step to Take?  

Dealing with divorce induces enough stress, which could only increase if you have to file for bankruptcy as well. A bankruptcy attorney in Orlando might recommend that filing for divorce first is more ideal and practical since a state divorce court cannot proceed with division of property if a federal bankruptcy court is handling your case. 

Tips on Surviving a Bankruptcy

Declaring bankruptcy is often equated to failure since it has a lot of repercussions on your credit score as well as mention a huge impact on your financial state. Declaring bankruptcy is definitely not a light decision, and you might need help from bankruptcy attorneys before making this decision. Fortunately, there are several ways that could help you rebuild your financial status even after bankruptcy.

Learn from your Mistakes

In the case of a Chapter 7 bankruptcy, you might be relying heavily on your cash at hand or on your bank account to pay for usual costs such as your bills and costs for your everyday living. In doing so, you can practice better discipline on your expenditures and track your spending patterns, which can help you draft a budget and formulate a forecast for the future.

A Friendly Parting of Ways

Some marriages that end in a divorce are seen as tension-filled and emotionally-charged, but it doesn’t have to be that way. Through collaborative law, a veteran Orlando divorce attorney can help draw the line down the middle and still ensure the couple parts as friends.

Getting to know your Trustee

When filing for a Chapter 13 bankruptcy, you and an Orlando bankruptcy attorney will often have to face a special trustee in resolving your case. Although a long road will be ahead of you, you should know that your trustee will be there with you every step of the way. The trustee is assigned to look after your case in a variety of ways.

Vital Documents

A Chapter 13 trustee is tasked to review your entire bankruptcy petition, supporting documents, and repayment plan as you present them to the court and to your creditors. The supporting papers will include your recent tax returns and pay slips. The object of the review is to verify the petition and the repayment plan by checking your income calculations to be fair across the board.

Spousal Abuse Sufferers Need Divorce Assistance

The most ideal way out for wives suffering from abuse at the hands of their husbands is divorce. This does not mean, however, that they should not pursue criminal or civil charges against their abusive spouses, under domestic violence laws.

Regardless of the form of assault they experience, many possible choices are available that would accommodate abused wives who need help and support. An Orlando divorce attorney understands the burden these women go through, along with the possible effects of the divorce on their children, and will provide legal advice through their knowledge and expertise in family law.

Meeting Chapter 13 Bankruptcy Filing Needs

When the best recourse for your financial woes is a bankruptcy filing, you may have to make the decision between filing for a Chapter 7 and a Chapter 13. If things point to a Chapter 13, however, you need to make sure that the amount you owe does not exceed the $383,175 cap for unsecured debts, and $1,149, 525 for secured debts, under the stated rules effective until April 1, 2016. Your bankruptcy attorney in Orlando can assist you in making sure your bankruptcy filing is in line with all stated regulations.