Challenges of Bankruptcy and Divorce
Yes it is all too often true. Bankruptcy and divorce are often challenges faced at the same time. Financial issues are one of the leading reasons for divorce in America. It is easy to see why many people who file for divorce also shortly thereafter, or before, file for bankruptcy. Sometimes life hits you over the head with not one challenge, but two, ore more. We understand the implications of filing for divorce while bankruptcy is pending or in the near future. A bankruptcy can seriously impact the financial aspects of a divorce. If you are filing for bankruptcy and divorce, we can help. If you are going through divorce and not yet considered the pros and cons of bankruptcy, you can find more information from the U.S. Bankruptcy Court by following this link.
Bankruptcy – Divorce and Family Law Considerations
Many people find that during or after a divorce, they are unable to meet the financial obligations imposed on them by their divorce decree or orders. In some cases a person may be stuck with a large amount of debt following a divorce that they are unable pay off. Bankruptcy can be a useful process for many individuals and families recently involved in a divorce or other family proceeding. However, it is important to know what type of debts related to a divorce are dischargeable and which are not.
Alimony, Child Support, Debt, and Property Payments in Bankruptcy
Alimony and child support are not dischargeable in bankruptcy. Generally speaking, debt payments and property awards are dischargeable in bankruptcy. However, debt payments and property awards that are part of an alimony or child support or are not dischargeable in bankruptcy. Additionally, a bankruptcy court may decide that property that was not labeled as an award of alimony or child support in a divorce decree or order, was intended by the court to be so and is therefore not dischargeable.
Utah Family Law Attorney
At our law firm, you can chat with a Utah Family Law Attorney who can answer your questions and provide you with legal advisement on your financial situation during or after a divorce. If you have questions regarding bankruptcy and divorce, contact Salcido Law Firm today and Get Protected!