Both divorce and bankruptcy can be very complicated and difficult. Putting them together can cause some significant problems. That said, it is not impossible to go through both processes at the same time. It is important, though, that you work with a very strong Bryan bankruptcy attorney who also has experience with divorce, as you will find at Peterson Law Group.
Coping with the Realities of Life
Marriages often end as a result of financial difficulties, so it should not be surprising that a married couple may find themselves wanting a divorce while a bankruptcy is underway. Most likely they will be in the process of a 3-5 year Chapter 13, for otherwise it would be simpler to wait with a Chapter 7.
Filing for divorce may mean that your bankruptcy attorney will need to withdraw from representing you. This is because he/she cannot represent two clients with a conflict of interest. Discuss the matter with your attorney before you file for this reason.
Challenges You May Face
You should prepare yourself for a number of significant challenges if you decide to push forward with a divorce while in the midst of a bankruptcy. That said, some couples simply need to separate, so you should not let the following discourage you if such is the case in your circumstances.
Since you and your spouse filed bankruptcy together, you need to determine whether the two of you can work out an arrangement whereby you are able to split the Chapter 13 monthly payments. If not, you may need to refile.
It is much easier to maintain a single household and pay down the bankruptcy. You may find that even with splitting the bankruptcy payment, coming up with the money each month is much more difficult. You have a few options if this is the case. First, you can simply continue to bear the burden and make the current monthly payments. You may also seek a modification of your Chapter 13 repayment plan to reduce the amount you have to pay per month. A third option is to convert the Chapter 13 to a Chapter 7. If your combined income didn’t allow this before, you may find that now you do qualify. Finally, you can file a petition with the bankruptcy court to bifurcate your bankruptcy.
For Help if You Are Seeking a Divorce and Bankruptcy
If you are filing for a divorce while in the process of a bankruptcy, prepare yourself for challenges. Your Bryan bankruptcy attorney will be a good resource, and may be able to provide you with other options than those discussed here. Call Peterson Law Group today to arrange a consultation at 979-703-7014 or 936-337-4681.