Bankruptcy Will Not Help You Avoid Divorce Obligations

If you are responsible for paying spousal support, filing bankruptcy will not negate that obligation.

You just found out that your spouse has filed for a divorce and you are in a panic. Perhaps at some point you made the decision to actually stop paying on your debts because you just could not keep up, and being served a divorce petition was the last straw. You think now it might be time to file bankruptcy, as you do not have the money to pay support. You also need to file some kind of response to the divorce action. Before you make any kind of decision relating to your divorce and/or filing for bankruptcy, consult with an experienced Iowa bankruptcy lawyer. If you make the wrong move now, you could find yourself with legal difficulties.

What considerations are there with respect to divorce and bankruptcy? Before the Bankruptcy Act of 2004, it was possible to discharge debts that came about as a result of divorce. Since lawmakers considered this to be a loophole, amendments were made to the Act to close it, which means you may no longer discharge any financial obligations that are the result of a divorce, including spousal and child support.

Your main consideration should be whether you are eligible to file for bankruptcy protection.  The fact that you are facing a divorce is irrelevant to the issue of filing bankruptcy. However, in order to make the most informed decision about how best to proceed and whether to file Chapter 7 or Chapter 13 bankruptcy, it is imperative that you discuss your situation with a qualified Iowa bankruptcy lawyer.

Filing for bankruptcy is stressful enough without also facing divorce at the same time. This is when you need to services of a skilled Iowa bankruptcy lawyer to help you get through the maze of rules, regulations, credit counseling, and paperwork. If you attempt to file bankruptcy on your own without legal counsel, you may be wasting your time and money and ultimately find yourself at risk having of your bankruptcy petition dismissed. Hiring a knowledgeable bankruptcy attorney is the best investment you will ever make.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Wednesday, August 1st, 2012 and filed under News and Press.
Tags: Iowa Bankruptcy Attorney, Iowa bankruptcy lawyer, Iowa business bankruptcy attorney, Iowa business bankruptcy lawyer