Divorce, which almost often involves disputes over money and debt, can lead to bankruptcy. The key is critical timing and knowing the main factors about how to prepare for the financial challenges associated with divorce. You may need to consult with a bankruptcy attorney in addition to a family lawyer when preparing for divorce. In any case, divorce can significantly alter your financial situation, so itâ€™s an important time to take stock of your circumstances and determine if more serious steps, like bankruptcy, are appropriate.
Dividing up assets in a marriage is never easy, especially when you may need to establish a new home for you and your children going forward. Paying for attorneys and having the financial shake-up for divorce will have a financial impact on you, which is why you should speak to a family lawyer before you file so you know what to expect.
Bankruptcy can initiate an automatic stay or hold on the division of assets for an impacted party. While it might release one individual from unsecured marital debts, you also need to consider that creditors might pursue the ex-spouse. Filing joint bankruptcy before a divorce that is possible even if you and your spouse are living separately can simplify and offer a fresh start to both parties. During bankruptcy, child and spousal support payments will continue although, a Chapter 13 bankruptcy allows arrearages to become part of the plan.
If you are contemplating divorce and are concerned about your own financial future now may be the best time to consult with a bankruptcy attorney. Getting a handle on your options ahead of time can clear up any misconceptions and give you some peace of mind about what you can do moving forward. Contact a New York bankruptcy attorney today to learn more. Jayson Lutzky handles both bankruptcy and divorce cases in New York State. He has an office in the Bronx and gives free in-person consultations. Call 718-514-6619 to set up your appointment and visit www.MyNewYorkCityLawyer.com to learn more about bankruptcy.