Bankruptcy And Divorce – Consult The Right Bankruptcy Lawyer

By Author: Sohini Bagchi
Total Articles: 17
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In the city of New York, couples often find that their divorces are getting highly complicated with factors such as unmanageable debt cropping up. In such a situation, an expert New York bankruptcy attorney can guide them come out of the situation and help them decide the better ways to deal with their debt. One obvious way is to file bankruptcy. Generally both the husband and the wife filing for bankruptcy during a divorce would make the process far simpler, but this is not a practical situation always.
Bankruptcy before Divorce
In case both the husband and wife finalize on the bankruptcy before going for divorce, practically all or at least most of their debts will be discharged. It is then that the court takes a decision on dividing the remaining assets and debts
Bankruptcy lawyers believe that if it is an option, finalizing the bankruptcy before filing for divorce will allow the spouses to discharge some or all of their debts. The divorce court can then decide how to divide the remaining assets ...
... and debts, if any between the two parties.
Bankruptcy during Divorce
Bankruptcy during divorce can complicate the entire process and in turn slows down the divorce. But it may happen that either spouse can file for bankruptcy during the divorce, whether they do it together or separately. Once bankruptcy is filed, the court will issue an automatic stay. This prevents creditors from trying to collect unpaid debts. The automatic stay is not applicable in case of child custody and child support, spousal maintenance as well as visitation rights.
Under certain circumstances of bankruptcy, it may become difficult for a spouse to collect court-ordered support. However, if you approach the right New York bankruptcy attorney, you will get to know about several exemptions that are available under the law.
Bankruptcy after Divorce
Some couple (ex-spouses) may decide to file for bankruptcy in New York when the divorce process is complete thinking that this would discharge some or all of the debts they were supposed to pay as part of the divorce order. However, certain types of debts are not dischargeable in either a Chapter 7 or Chapter 13 filing of bankruptcy, including child support and alimony, and it is mandatory to pay them.
So, if you are contemplating divorce in New York and have a heavy debt, you should immediately contact an experienced bankruptcy lawyer. The guidance and support of the bankruptcy lawyer would be the most valuable at a time as both divorce and bankruptcy are sensitive and complex issues. Any queries, you can visit us at: http://www.thenybankruptcyattorney.com/