Frequently Asked Questions About Bankruptcy And Divorce
Choosing to file bankruptcy is a serious decision, and because of that, I advise my clients to consider it carefully. Bankruptcy can enable you to get a fresh start on your financial life, but it can also do more harm than good if it is not handled with care. To help you consider how a bankruptcy filing can help you, I invite you to read through these frequently asked questions. To talk more, call me directly and we can consider your options together.
What is bankruptcy?
Bankruptcy is a legal proceeding that can eject or reorganize many types of debt. If you are having significant trouble getting your bills paid or meeting your financial obligations, filing for bankruptcy can enable you to “wipe the slate clean,” so to speak. You have a legal right to file for bankruptcy in any state. Doing so will ensure that your creditors stop pursuing debt collection tactics until you have sorted things out and devised a plan with your attorney.
Won’t bankruptcy damage my credit?
Yes and no. Think of it this way: If you’re facing the prospect of bankruptcy, chances are your credit isn’t so great to begin with, and filing won’t necessarily make it worse. A bankruptcy filing appears on your credit report for 10 years after you file, so it is definitely a long-term decision and you will want to think carefully about the repercussions of filing. On the other hand, choosing to file for bankruptcy will allow you the chance to rebuild your credit rating, which means you have the opportunity to do things right this time around.
How does bankruptcy affect divorce proceedings?
It is not uncommon for marriage dissolution and bankruptcy proceedings to go hand in hand. This is why I offer both as part of my practice. As a Binghamton family lawyer, I can help you decide whether a bankruptcy filing would help or harm your financial position in a divorce.
For some divorcing couples, deciding whether to file for bankruptcy as a couple or singly is complicated. You will need to consider which parts of the law apply in your individual case. You will also need to know which exemptions will apply. Will alimony payments be affected? What about child support? How does a bankruptcy filing change the valuation of our assets?
These are complicated questions, and I typically advise clients to do their research before making any decisions that could affect their future financial health. Meeting with me can get many of these and more questions about bankruptcy answered.
Let Me Answer Your Most Complicated Questions
To learn more about your bankruptcy options during divorce, reach out to me, attorney Lauren S. Cohen, by calling 607-821-0100 or 866-539-2596 or by sending an email via an online contact form. From my offices in Johnson City and Binghamton, I work with clients throughout the Southern Tier of New York.