What Happens if I File for Bankruptcy During the Divorce Process in CA?

What Happens if I File for Bankruptcy During the Divorce Process in CA?

When couples get divorced, they have a lot on their minds, including emotional, financial, and legal issues, all of which making the process all the more complicated. However, if you are someone who is looking to file for bankruptcy during the course of your divorce, it may complicate matters even further, which is why you cannot afford to proceed without an experienced Los Angeles divorce attorney on your side. Our firm is ready to effectively guide you through every step of the legal process ahead. Here are some of the questions you may have:

What debts are dischargeable in bankruptcy?

When considering whether now is the best time to file for bankruptcy, you should first understand the basic concepts of bankruptcy. For example, there are two types of debt when it comes to filing for bankruptcy: dischargeable debt and non-dischargeable debt. Dischargeable debt includes most debts, such as credit card debt, and once credit card debt is discharged, you no longer have to pay it off. However, that being said, there are various debts that simply cannot be discharged, or wiped away, and many of these debts have to do with family law matters. For example, both child support and spousal support are non-dischargeable debt, which means that if you are behind on support payments of any kind, you cannot simply file for bankruptcy and wipe those debts away. You have to pay them. Those who fail to make those payments will most likely face very serious legal ramifications as a result.

How will filing for bankruptcy affect the outcome of my divorce in California?

Though there are various benefits of filing for bankruptcy during a divorce, such as having property settlement debts discharged (in Chapter 13 bankruptcy), the truth is, oftentimes, when one spouse files for bankruptcy during the course of a divorce, tax issues will almost certainly arise. In your property settlement, it should clearly state whether this debt is dischargeable, however, if your settlement does not cover this, the courts will have to interpret whether the debt is dischargeable. The unfortunate reality is that, not unlike many other divorce-related matters, filing for bankruptcy during a divorce can be quite complicated, which is why you cannot afford to proceed without a seasoned California divorce attorney who has handled various divorces of this nature in the past. Our firm is ready to assist you today.

Contact our experienced Los Angeles firm

Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.

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