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Divorce, Spousal Support and Bankruptcy
While there are many emotional problems that occur when a marriage or civil union are dissolved, there can be serious financial consequences as well. An individual in this situation may be ordered to pay spousal support or child support or support for other dependents. This is in addition to legal fees that are involved in this process.
Once a couple has separated and are going through a divorce, they will have to assess their financial situation. Many times, the financial situation surrounding a divorce is so severe that bankruptcy may have to be considered. Many debts can be discharged through the bankruptcy process but spousal support and child support must be paid as they are not dischargeable debts.
If the bankruptcy option is chosen, the court will notify your creditors and will stop them from being able to contact you directly. Unsecured debts such as credit card debt, some types of loans and other types of debt may be discharged through the bankruptcy process. The court places an “automatic stay” on your accounts which will free you of the responsibility of having to make payments on the accounts and from harassment from creditors.
Some debts cannot be eliminated by bankruptcy. Since courts recognize the importance of spousal support and child support, these obligations must be paid. There are also legal expenses involved in a divorce proceeding which must be paid, including lawyer’s fees and court costs.
Before considering filing for bankruptcy, it is always wise to seek the advice of an experienced bankruptcy attorney. He can aid you in assessing your financial situation and give you advice on the best way to handle your problems. If you are overburdened with financial obligations after a divorce, bankruptcy may be the best option since it will free you from some of your debts, making it easier to pay spousal and child support as required by law.
Getting good legal advice during a time of great emotional and financial upheaval is critical. Experience matters in these cases. To speak to an experienced attorney in your area for free, call 312-273-1217 from anywhere in the Chicagoland area.
By Kerrie Neal