What Happens When a Former Spouse Files for Bankruptcy?

If you are someone who is getting divorced, you most likely have a lot to consider, as divorce is a very involved process. However, if you are getting divorced and are filing for bankruptcy, this will most likely complicate matters even further. Our firm is here to help you through every step of the process ahead. Please continue reading and speak with our Bergen County divorce attorneys to learn more about bankruptcy and divorce and what we can do for you. Here are some of the questions you may have:

Is child support considered a dischargeable debt in bankruptcy?

When someone files for bankruptcy, their debts are broken down into two categories: dischargeable and non-dischargeable. Simply put, dischargeable debts are those that can be wiped out by filing for bankruptcy. There are many examples of dischargeable debts, though the most common is credit card debt. That being said, non-dischargeable debts are those that cannot be wiped out by filing for bankruptcy. Child support is a non-dischargeable debt, which means that even if you file for bankruptcy, you will still be legally obligated to make your child support payments on time. Other domestic support obligations are also non-dischargeable in bankruptcy.

Will filing for bankruptcy affect my property settlement in New Jersey?

Under certain circumstances, property settlement debts may be discharged via filing for Chapter 13 bankruptcy. However, if you do file for bankruptcy and you are getting divorced, it may have serious tax implications. In many cases, bankruptcy courts will look carefully at your property settlement, which is why it must contain information regarding both parties’ intentions, which should allow the court to make an accurate assessment as to whether the debt is dischargeable. As stated earlier, divorce is complicated, and, as you can see, if you file for bankruptcy, your divorce can become all the more complex. Our firm has handled many of these cases through the years, and we are ready to do the same for you. If you are ready to get started, or you have any questions regarding bankruptcy and divorce, our firm is here to help. Pick up the phone and give our experienced New Jersey divorce attorneys a call today.

Contact our experienced Bergen County firm

At Townsend, Tomaio & Newmark, our attorneys have extensive experience helping clients to understand and protect their legal rights before, during, and after the divorce process in towns across New Jersey and Bergen County, including Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee. To speak with our team of divorce lawyers today in a free and confidential consultation regarding your concerns about your divorce, please contact us online, or through our Hackensack, NJ office at (201) 397-1750.

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