During the course of a divorce, it may become evident that there are debt problems that need to be dealt with immediately. Bankruptcy may need to be filed. It is important that your divorce attorney understands the unique interaction that the bankruptcy process will have on your divorce proceeding. At Lasiter & Jackson, our attorneys have extensive experience with the most complex divorce cases. We will make certain your interests are protected.
If you are considering a divorce and you know that debt problems may be an issue, contact us to learn more about how we can help you.
When you file either Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect. This stay puts a halt to the divorce proceeding until your bankruptcy is finalized. However, there will still be issues that need to be handled. For example, child support and spousal support can and need to be addressed during bankruptcy. There may also be issues about who stays in the home and other questions that will need to be answered. Our lawyers will work with you and your bankruptcy lawyer to ensure that nothing is overlooked.
When the bankruptcy is finalized and the divorce can move forward, property division and debt division will need to be handled with care. Depending on the type of bankruptcy that was filed, some property may have been liquidated. Most debt will have been discharged. However, the home may have been kept and there may be other property on which payments will still need to be made. There may be unique issues in terms of how the property and debt are divided.
No matter how challenging your situation may seem, we have the experience to help. If you contact us in the early stages, we may recommend filing bankruptcy before initiating a divorce or, in some cases, waiting until the divorce is finalized. The timing of bankruptcy in relation to divorce can be a matter of strategy, and we will find the strategy that is right for you. Contact our law office in Phoenix, Arizona, to discuss bankruptcy in divorce.