What Happens When a Former Spouse Files for Bankruptcy?

What Happens When a Former Spouse Files for Bankruptcy?

There are few things more complicated than divorce. That being said, if you are getting divorced, or you are already divorced and you are also filing for bankruptcy, matters may become even more complicated. Please continue reading and reach out to our seasoned California divorce attorneys to learn more about bankruptcy and divorce, as well as how our firm can help you through every step of the legal process ahead. Here are some of the questions you may have:

Is child support dischargable in bankruptcy?

To start, the first thing you should understand is that there are dischargeable and non-dischargeable debts in bankruptcy. There are various debts that are dischargeable, such as credit card debt, however, there are also many debts that are considered non-dischargeable, meaning they cannot be wiped out by filing for bankruptcy. That being said, domestic support obligations are generally non-dischargeable debts. This means that, for example, if you are a divorced parent and you file for bankruptcy, you will still have to abide by your child support agreement. Child support, as well as other domestic support obligations, are non-dischargeable debts. This means that if you are someone who owes child support and you file for bankruptcy, you will have to continue making these payments no matter what, and if you do not, you may face very serious legal consequences.

How does filing for bankruptcy affect property settlements in California?

To start, you should understand that in many cases, property settlement debts can be discharged if a spouse files for Chapter 13 bankruptcy. That being said, filing for bankruptcy often cause serious tax issues to arise when it comes to a divorced couple. Bankruptcy courts are often swayed by carefully-structured property settlements. Any property settlement you have should clearly state both parties’ intentions, thereby allowing the courts to accurately interpret the settlement regarding whether the debt is dischargeable. The bottom line is that if you are someone who is divorced, or is getting divorced, and filing for bankruptcy is part of the equation, you will have to retain the services of an experienced Los Angeles divorce attorney who has helped countless individuals through the process before. We are here to assist you–all you have to do is pick up the phone and give us a call.

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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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