Many times bankruptcy and family law go together. Sometimes it is because one person can no longer afford the expenses that two people used to contribute to. Other times it is that one spouse has taken on a significant amount of debt in the divorce settlement. Bankruptcy offers a solution to these problems. When a person files bankruptcy after a divorce is finalized, they can discharge most of the debt they have accumulated in the divorce. Barring an agreement between the parties in a divorce decree that one party will not discharge their debts in bankruptcy, a person can file for bankruptcy and eliminate all dischargeable debts. These debts typically include credit card bills that the couple shared that one spouse took in the bankruptcy. If one spouse took possession of real estate but can no longer afford the payments with just one income, they can file for bankruptcy protection to avoid liability of any deficiency owed.
One kind of debt that is not dischargeable that comes up in family law situations is alimony or spousal support. Both alimony and spousal support are specifically listed as non-dischargeable by the bankruptcy code, so declaring bankruptcy on these debts will not discharge them. However, many times bankruptcy is the best option for someone who has accumulated a massive amount of debt after going through a divorce.
It takes an experienced matrimonial attorney to navigate you through the troubled waters that affect you as you undergo a divorce or dissolution. Jamie L. Anderson dedicates her practice to representing families through the changes of a divorce or dissolution. She has made herself one of Greene County’s most prominent matrimonial attorneys and will use her experience to secure your family, your finances and your future. Contact Jamie L. Anderson at (937) 879-9542 or visit www.OhioDivorceAttorney.com to learn more.