Palmdale Bankruptcy During Divorce Lawyers
Divorce is never an easy process, but it is even more challenging when you realize that your financial situation is in serious distress. This is often the case when going through the initial steps of divorce, when you review information on all assets and debts. You might find that you are in the negative as a couple, and divorce will complicate the proceedings. Under the circumstances, it may be wise to consider bankruptcy. There are important factors that could impact your decision, including eligibility and timing.
Bankruptcy and divorce involve two entirely separate proceedings, but they are very interconnected in terms of the interests between spouses. With the right planning, you can resolve debt through bankruptcy that accounts for the end of your marriage. Please contact Wadhwani & Shanfeld today to learn more about the process. We can set up a consultation with a skilled Palmdale bankruptcy during divorce lawyers. Plus, you can learn more by reviewing some background information.
Timing and Your Options
There are two types of bankruptcy that you might consider. Chapter 7 bankruptcy discharge eliminates qualifying debts, while Chapter 13 restructures them. You will pay an amount you can afford to creditors.
With either type, an important initial consideration is when to file bankruptcy. For instance:
- By filing jointly, you reduce your costs.
- Bankruptcy as a married couple can eliminate overdue bills for utilities, credit cards, personal loans, and auto loans. You will not split them through property division.
- Both Chapter 7 and Chapter 13 put an automatic stay on creditor efforts to collect a debt.
A disadvantage of filing Chapter 13 is that you cannot complete divorce until the debt repayment plan is also complete, three to five years down the road. With Chapter 7, the downside is that you may not qualify because of income criteria. However, some people will meet the Means Test after divorce, when they are living on a single income.
Our Legal Services for Bankruptcy and Divorce
At Wadhwani & Shanfeld, our initial focus will be on two key points that affect legal strategy:
- Whether you qualify for Chapter 7 versus Chapter 13; and,
- Timing on filing bankruptcy for before and after divorce.
We will advise you on each factor, ensuring that we take advantage of all favorable opportunities. When we reach a decision with you, our Southern California bankruptcy lawyers will handle all legal requirements. You can rely on us to:
- Review all financial information;
- Prepare and file the bankruptcy petition, with supporting documentation;
- Attend court hearings and the Chapter 13 meeting of creditors; and,
- Complete the process at the final hearing.
Call Now to Speak to a Palmdale Bankruptcy during Divorce Lawyers
Divorce is difficult, but it does not need to leave you destitute. When you employ a suitable bankruptcy strategy, there are benefits that help you resolve debt that would drag you down. To learn more about our legal services, please contact Wadhwani & Shanfeld to schedule a consultation with a Southern California bankruptcy and divorce lawyer. We can tell you more about how the process works.