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Get Experienced Help When Facing Bankruptcy and Divorce
In the poor state of today's economy, debt problems and divorce are very much intertwined. In fact, divorce is one of the leading factors in why people file for bankruptcy. However, it a divorce can complicate a bankruptcy and vice versa! As such, it is important to consult with an experienced lawyer who can advise you of your rights and explain the most beneficial strategies in your situation in order to maximize your chances for a successful outcome in both bankruptcy and divorce proceedings.We at Abbasi & Associates have both qualified bankruptcy attorneys and qualified Family Law attorneys. As such, we have the knowledge and expertise to help you guide through both your divorce and you bankruptcy. Get a free consultation today.
Call us for Advice in Bankruptcy and Divorce
The Abbasi & Associates offers the benefit of attorneys who practice in both family law and bankruptcy law. This skill set enables us to thoroughly understand the complex issues involved in both cases, the challenges presented by dealing with divorce and bankruptcy collectively and effective solutions that may benefit our clients. It is important to understand that bankruptcy and divorce are handled under two separate jurisdictions. While divorce is handled in state court, bankruptcy is handled in federal court. Family courts are reluctant to resolve any matters pertaining to the disposition of assets and debts until your bankruptcy case (or your spouse's) is completed - delaying your divorce.Deal With Debt Problems First — Then File for Divorce
In many respects, it is advantageous for a couple to file for bankruptcy before proceeding with divorce:- Debt issues are resolved prior to your divorce. Therefore, there are fewer disputes over how the debt is allocated. While some people will agree to a divorce settlement where the debt is allocated to one person on the intention that the individual will file for bankruptcy after the divorce is finalized, this can have disastrous results. Even if the debt is discharged in bankruptcy, the bankruptcy discharge only protects the individual who filed for bankruptcy. Creditors may still pursue debt repayment from the other spouse. A joint bankruptcy filing prior to divorce eliminates this risk.
- Distribution of community property is more straightforward if the bankruptcy is completed first. Once the bankruptcy is completed, there is a clearer picture of what assets remain (if any assets were liquidated). A common concern in divorce is what to do with the house. In cases where there is no equity in the home, surrendering the home in bankruptcy allows the couple to eliminate mortgage obligations and avoid the need to sell a house that has an "upside-down mortgage." Depending on the situation, the vehicle or other secured assets may be surrendered in order to eliminate debt obligations.
Talk with Our Los Angeles Community Property Lawyers About Your Options in Bankruptcy and Divorce:
As experienced bankruptcy and divorce lawyers, we understand that no two situations are alike. Depending on the circumstances, it may be beneficial to file for bankruptcy after divorce. In other situations, it is too late to consider filing for bankruptcy first and other strategies must be considered.
Our Woodland Hills bankruptcy and divorce lawyers only recommend a course of action after we have a thorough understanding of your unique situation. To discuss your situation with our firm, contact us at one of our four California offices by calling (818) 888-6614. We offer free initial consultations.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
Related Links - Bankruptcy Overview | Chapter 7 Bankruptcy | Chapter 11 Bankruptcy | Chapter 13 Bankruptcy | Bankruptcy Lawyers CA | Foreclosures | Bankruptcy & Divorce | Discharging Of Debt
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