Bankruptcy and Family Law Issues in Orange County
There's a definite correlation between debt pressures and divorce, and it works both ways. Just as financial problems can strain and destroy a marriage, the support obligations and increased household expenses characteristic of divorce can push a person toward bankruptcy.
If you need advice about Chapter 7, Chapter 13 and useful approaches to debt problems related to divorce or child support, contact the ANH Legal Group in Irvine to discuss your situation with a knowledgeable bankruptcy attorney.
Call 888-9-GOT LAW (888-946-8529) for Advice About Bankruptcy in Orange County
While each of our four California offices advises people with debt problems caused or aggravated by divorce, our Orange County clients need advice on these issues especially frequently. There are several things to consider about family law obligations if you're thinking about bankruptcy, or if you're concerned that a divorcing spouse is considering debt relief under any chapter of the Bankruptcy Code:
- Child support or alimony payments cannot be discharged in bankruptcy
- Bankruptcy's automatic stay will not prevent collection of child support or alimony payments, or interrupt a paternity suit to determine the amount of child support
- Unsecured property settlement payments can be discharged in bankruptcy
- Bankruptcy will interrupt a pending divorce case until one spouse or the other gets relief from the automatic stay in bankruptcy court
- If a divorced spouse in bankruptcy discharges a debt that he or she assumed as part of the division of marital property and liabilities, the creditor can usually pursue the other spouse for payment
Another consideration has to do with the timing of a bankruptcy or divorce case. If both spouses are under severe financial pressure — as they generally are — it might make sense to file for bankruptcy jointly before the divorce, especially if the couple is eligible for Chapter 7 debt relief. Many debts will be discharged, which will make the property settlement issues in the divorce that much easier to deal with. The Chapter 7 bankruptcy case will also take only four to six months from filing to discharge.
Some of our clients need advice about divorce after the couple starts paying into a Chapter 13 plan, which takes three to five years to complete. We can tell you about the possibility of splitting the case in half, which would allow each divorced spouse to perform on half the plan.
Filing for Chapter 13 after a divorce will normally have little effect on either spouse's obligations to each other, but the person paying spousal or child support will make the payments to the Chapter 13 trustee rather than the other person.
For advice about any debt relief issue in Orange County, contact the ANH Legal Group in Irvine for a free consultation with a bankruptcy lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
