Miami, Florida Bankruptcy and Divorce Attorneys

Divorce impacts bankruptcy in the division of marital property and the division of marital debt. In the state of Florida, any assets or property acquired over the course of a marriage must be equitably divided, including retirement funds, equity in a home, bank accounts, and other assets. In the case of debt, however, the terms of a divorce settlement do not affect the agreement you and your spouse have with creditors.

Co-Signor? Co-Obligor?

As such, even if you never used a credit card or drove your spouse's car, if your name is on the loan or account, you can be held responsible its debt - even if your divorce settlement indicates your spouse will pay it off. For these reasons, it's essential to determine how assets and debts will be assigned since this will impact whether you qualify for Chapter 7 or Chapter 13 bankruptcy.

At Kingcade & Garcia, Attorneys at Law, we work closely with CPAs, forensic accountants, and business evaluators when necessary in representing clients filing for bankruptcy during or after filing for divorce. To schedule an appointment and learn how we can help you, contact bankruptcy and divorce lawyers at Kingcade & Garcia today.

Chapter 7 and Chapter 13 Bankruptcy and Divorce

While Chapter 7 essentially wipes out certain kinds of non-secured debt, like credit card debt, Chapter 13 involves a reorganization of your debt according to a payment schedule agreed to between you and your creditors. As a result, in most Chapter 13 bankruptcy cases, it's possible to keep your home and car as long as you can continue making monthly payments.

The Impact of Marital Debt on Bankruptcy

If you spouse declares bankruptcy during or after your divorce, the creditors involved may decide to try and collect unpaid debt from you. If your spouse agreed to pay off jointly held credit cards or a car loan you signed your name to, a creditor will likely demand payment from you when it becomes clear they won't collect from your former spouse. Since your divorce settlement doesn't modify your legal contractual obligations to your creditors, you may have very little choice but to pay off the debt or declare bankruptcy yourself. You would then have the option of suing your former spouse for violating the terms of the divorce agreement.

Bankruptcy and Obligations under Your Divorce Settlement

Filing for bankruptcy will not discharge child custody or spousal support obligations. If you can no longer afford child support of spousal support payments, you will need a post-divorce modification in order to modify payments without threat of wage garnishment, asset seizure, or jail time.

Contact Bankruptcy and Divorce Attorneys at Kingcade & Garcia Today

There are a number of financial and legal issues that must be considered before, during and after divorce regarding bankruptcy. If you have questions and would like to discuss the legal options available to you, contact bankruptcy and divorce attorneys at Kingcade & Garcia today.