Bankruptcy and Divorce

Stop Contempt of Court.

Divorce and BankruptcyIf you’re suffering from the heavy-handed order of a divorce judge, then Chapter 13 can provide substantial bankruptcy relief which cannot be obtained through Chapter 7.  Stop contempt of court proceedings immediately by filing Chapter 13 bankruptcy.  You can even stop contempt of court proceedings the day before your hearing, potentially avoiding time in the county jail.

Sound too good to be true?  Read on.

You’re behind on support orders or you haven’t paid joint marital debts the judge ordered you to pay. You don’t have the money to get caught up and a contempt citation is pending.  You’re looking at tons of additional attorney fees and even potential jail time.  You can’t even afford to hire defense counsel for the contempt of court hearing.

Chapter 13 bankruptcy can fix the problem, with no out-of-pocket attorney fees.

Support orders.

If you’ve struggled to pay your child support or maintenance and have fallen behind, you might think there is no solution.  It is true that support obligations cannot be discharged in bankruptcy.  It is untrue that your situation is hopeless.  In Chapter 13 bankruptcy, all of your back support obligations can be reorganized in a Chapter 13 bankruptcy plan over five years.  This can keep you out of jail, stop a contempt proceeding in its tracks, and put the breaks on out-of-control attorney fees you might be incurring along the way.

Eliminate debt division obligations.

Even better news for many people, any order of the divorce judge not related to support can be discharged in Chapter 13.  This means that if you have a former spouse who was credit card happy during the marriage — and the divorce judge says you’re stuck with the bills — then you can discharge this obligation in Chapter 13.

It is important to note that you cannot discharge such obligations in Chapter 7 bankruptcy.  We have seen clients that were ill-advised to file Chapter 7 bankruptcy only to learn after bankruptcy that they are still on the hook for divorce-related debts.  A permanent solution to your post-divorce life can be Chapter 13 bankruptcy.

Divorce in the middle of chapter 13

On a related topic, click here to review information about divorce during a Chapter 13 bankruptcy that has already been filed.