Two individuals recently consulted with me, both whom had waited too late to speak with a bankruptcy attorney. One had recently married, one had recently separated. Both of them had large debt which they needed to remove to create a new start for their financial life. Regrettably, by waiting to report their bankruptcy until after marriage and getting a divorce and marriage, the problems had created significant legal dilemmas. Here's why.The divorcee had a settlement arrangement that required payment of substantial credit debt that had been gathered by both spouses during the marriage. If a bankruptcy had been done prior to the divorce, this debt might have been simply dismissed for the man and wife. However, by placing the debt in a settlement agreement, this man produced a critical obstacle to reducing the burden of this charge card debt. That is because the bankruptcy rule does not permit (except in very unusual situations) responsibilities in marital settlement agreements to be dismissed or eliminated in a bankruptcy proceeding. While this man's obligations to the creditors could be discharged, his obligations beneath the marital settlement agreement can not. The credit card issuers will enforce the jointly acquired debt against his ex-wife, when he is dismissed, and she in turn will enforce his obligation to pay for under the marital settlement agreement. The only real way he'll manage to remove this debt obligation would be to tell his ex-wife to also declare bankruptcy. If she will not do that, he is stuck paying the debt.The married customer had an alternative problem. She had accumulated significant debt before her marriage. If she had filed for bankruptcy before marrying, she'd have qualified for a chapter 7 bankruptcy because her income was less than the median income for the State of Florida. Nevertheless, her new husband features a significantly larger income. The bankruptcy laws needed that this money be looked at by the bankruptcy judge to determine whether a consumer may use section 7 as a way for discharging debt. However, she disqualified himself from chapter 7 aid by marrying a wealthier man.Central Florida couples with large debt that are considering divorce must first consult with an Orlando bankruptcy lawyer. In most cases, the discharge of significant bank card debt, and other kinds of debt, may make for an cheaper and easier divorce. That makes for a genuine "fresh start" for divorcees, who will start a new life without financial troubles walking behind them in to new relationships. Any resident of Central Florida with significant debt who is contemplating marriage should also seek the guidance of a bankruptcy attorney in Orlando, and do so before, not after, "tying the knot".
More Articles in Community Articles
Mack Avenue SuperBand - Philadelphia 2016
JUSTIN MULLENS PUSHES THE BOUNDARIES OF THE FRENCH HORN & OFFERS NEW COMPOSITIONS ON THE CORNUCOPIAD
Jason Paul Harman Byrne
Thad Jones/Mel Lewis Orchestra - Resonance Records Presents Deluxe 2 CD Set Celebrating 50th Anniversary of Orchestra's Opening Night
Willie Bobo: The Life of the Party
Berklee Presents the Fisk Jubilee Singers at Symphony Hall
New Release: "Poeta"!