Divorce and Bankruptcy in Dallas and Fort Worth
When a couple determines that divorce is amenable, there are a number of financial obligations that must be accounted for. Asset division, child support and the possibility of alimony are among a myriad of monetary responsibilities. While these obligations are defined during a divorce and are enforceable after the divorce has finalized, marriage and family therapists indicate that long before a couple parts ways there are often money problems that are at the very heart of marital discord.
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- Bankruptcy Laws
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How Divorce Affects Your Finances
Unfortunately, divorce and bankruptcy often go hand in hand. If you and your spouse are working through divorce proceedings and one of you files bankruptcy, the divorce will come to a screeching halt. The divorce process is less challenging to accomplish if you and your spouse file jointly for bankruptcy first and file for divorce second. With more than 15 years of bankruptcy law experience, Leinart Law Firm has the skills and expertise to guide you through this sometimes bumpy road.
Divorce can impact your finances in a number of ways; that’s why it’s prudent to work with a reputable divorce bankruptcy attorney. Lost income, alimony payments and child support are all expenses that many divorced people encounter, but there are other ways that divorce can affect your finances, including:
- Retirement planning
- Childcare expenses
What to Do When Facing Bankruptcy After a Divorce
If you and your spouse divorce, you would likely have divided both assets and debts in the settlement. The assignment of the debts is an agreement made between you and your former spouse, not the creditor to whom you both owe money to. If your ex-spouse defaults in the payment of these debts, the creditor can collect the debt from you. When a divorce has finalized and your former spouse files bankruptcy, the creditors will look to you to repay any outstanding debts.
At Leinart Law Firm, we have witnessed this happen, and our clients that were having trouble making ends meet before a former spouse declared bankruptcy were often sent into bankruptcy as well. Consult an experienced divorce bankruptcy attorney to discover advantageous solutions. If you are looking for the best post-divorce bankruptcy Fort Worth law firm, think Leinart Law.
If I divorce my spouse, will I be required to take on his or her debt?
It depends on the state you live and when the debt was acquired. Texas is a community property state; this means that any asset or debt you or your spouse acquired during your marriage is considered community property. Both you and your spouse have a ½ community property interest. If the debt was acquired during your marriage, you are both equally liable to repay it. There are particular circumstances which may alter how much debt you each owe. You may also make an explicit agreement that assigns a certain amount of debt to each spouse. If you would like to know how much debt you may be responsible for, it is best to talk to your divorce attorney. They would be able to advise you depending on the particular facts in your case.
It’s important to note, however, that if your former spouse files for bankruptcy, you will still be liable for the entire debt in the eyes of the creditor, even though it will be discharged for your former spouse. Filing for personal bankruptcy can help erase any debt carried over from a divorce.
Contact Us in Dallas, Fort Worth, or Plano
Leinart Law Firm focuses solely on bankruptcy law. In fact, we don’t practice anything but bankruptcy law. We have handled thousands of cases and have likely encountered clients who have faced the same financial and marital challenges you are facing now. We can, with a degree of certainty, help guide you through the bankruptcy process, regardless of your divorce status.
For a free consultation and evaluation, contact us at Leinart Law Firm by calling 800-518-3328 or completing our convenient online debt evaluation form.