Representing Individuals in Divorce and Bankruptcy
The loss of your spouse’s income coupled with the likely need to find a new home, a new car, and other expenses make financial issues a real problem with divorce. This strain on your finances may raise the issue of bankruptcy. You should discuss your financial situation with an attorney, an accountant, or one with a strong background with bankruptcy issues and law to see if declaring bankruptcy is the best option for you. At Utah Divorce Hotline, we have attorneys who understand the bankruptcy considerations you may be facing in divorce. You should be aware that there are multiple types of bankruptcy and that each have their advantages and disadvantages.
You might also want to consider whether to file jointly with your estranged spouse prior to the divorce to save on filing fees and reduce the overall costs, but you both spouses need to have a desire to file for bankruptcy and should have a good relationship with each other for a joint bankruptcy to work.
Types of Bankruptcy:
Chapter 7: All of your debt would be discharged, but any assets that are non-exempt to you would be sold off to try to pay off your debt. After the bankruptcy, you will have no creditor, but you will likely lose your house, your car and other items to pay off your debt. You should discuss with a professional which items are exempt from sale before you pursue this action.
Chapter 13: You would retain all of your assets, and would be given enough money to live on and have the rest go to a trustee who will pay off your debt to your creditors. You will have to pay a bankruptcy attorney and the trustee along with your creditors, but you maintain your property.
Considering Divorce and Bankruptcy? We can help.
Speak with a Utah Divorce Lawyer for free. Reach us by phone anytime day or night at 801.618.1331. Our team of attorneys can put a game plan together to tackle your family and financial concerns. Get the peace of mind you deserve today. We will guide you through the Utah bankruptcy process and divorce giving you the fresh start you need.