It may seem like a Chapter 13 bankruptcy would go hand-in-hand with divorce proceedings since a permanent separation like this can mean financial hardship for both partners. Since you already have a lawyer, shouldn't you try to use him for that too? Plenty of people who are in debt end up getting divorced and don't know what to do about it. With Chapter 13 bankruptcy, you won't have to worry about paying off your debts for two to five years. Going to bankruptcy court will also allow them to have jurisdiction over financial decisions which are part of your divorce. You may be wondering if it's in your best interests to file for Chapter 13 bankruptcy while in the middle of a divorce.
The first drawback of doing so is that the court will issue an automatic stay order. This order puts a hold on all lawsuits involving debtors which includes your divorce action. Until another order is issued saying it's OK to proceed, your divorce will be put on hold indefinitely. The bankruptcy court will also have to approve or reject any agreements you make in divorce court.
You're mistaken if you're like people who think you're unable to file for Chapter 13 bankruptcy during a divorce. Of course, this is never going to be the most opportune time to file bankruptcy, not while you've got everything to deal with involving your divorce. Besides, as mentioned above, a bankruptcy can cause your divorce to go into an immediate holding pattern which may stop its completion until the bankruptcy case is resolved.
Once your divorce has been finalized, the payment plan established by the Chapter 13 bankruptcy will remain in effect. This means that the divorce settlement will need to address this and state how the payments will be made and by whom. This can be another argument to be had in the divorce case.
Choosing to file for Chapter 13 bankruptcy during a divorce will just give you more headaches during a divorce. Think about the headaches involved in filing two concurrent suits before doing so. Doc No. rjslhssld-sdg
Kristie Brown writes on a variety of topics from health to technology. Check out her websites on save my marriage and stop divorce
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