Bankruptcy & Divorce FAQ

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Bankruptcy & Divorce FAQ

Sarasota, Manatee, Pinellas and Hillsborough County Bankruptcy Attorney

If you are going through a divorce it can impact 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, the terms of a divorce settlement do not affect the agreement you and/or your spouse may have with creditors.

Are you a co-signer on a loan with your spouse?
If your name is on a loan or credit account, you can be held responsible its debt even if you never used a credit card or drove your spouse's car. Your creditors can hold you responsible for the payment of the 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.

The Daniels Law Firm will work closely with CPAs, forensic accountants, and business evaluators when necessary in representing clients filing for divorce and bankruptcy. To schedule an appointment and learn how we can help you, contact the divorce and bankruptcy attorneys at The Daniels Law Firm today.

What are the differences between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 bankruptcy essentially wipes out certain kinds of non-secured debt, like credit card debt. Chapter 13 bankruptcy involves a restructuring or reorganization of your debt according to a payment schedule agreed upon by you and your creditors. Because of this restructuring under Chapter 13 bankruptcy cases, it is possible to keep your home and car as long as you are able to continue making the monthly payments.

The Impact of Marital Debt on Bankruptcy
How will bankruptcy filing affect our martial debt? If you or your spouse declares bankruptcy, during or after your divorce, the creditors involved may decide to try and collect unpaid debt from the non-filing spouse. For instance, 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 evident they won't be able to collect from your former spouse. Because your divorce settlement cannot modify your current legal contractual obligations to your creditors, you may be left with very little choice but to pay off the debt in full or even declare bankruptcy yourself. You may ultimately have the option of suing your former spouse for violating the terms of the divorce agreement but that will not help you when the creditors are calling.

Child Support, Spousal Support and Bankruptcy
If you file for Chapter 7 or Chapter 13 bankruptcy, this will not release you from maintaining your current child support or spousal support obligations. If you face a situation where you can no longer afford the current child support of spousal support payments, you may need a post-divorce modification(hyperlink to my other page) in order to modify payments without facing wage garnishment, asset seizure, or even jail time.

Contact the Divorce and Bankruptcy Attorneys at The Daniels Law Firm Today
There are a number of financial and legal issues that must be considered before, during and after your divorce regarding bankruptcy. If you have questions and would like to discuss the legal options available to you, contact the divorce and bankruptcy attorneys at The Daniels Law Firm today for a free 30 minute consultation.

Client Testimonials

The Daniels Law Firm did a fantastic job helping me through my divorce, they were supportive, informative and helped me every step of the way…
Sarah H.
Elementary School Teacher

I would certainly recommend The Daniels Law Firm, they answered every question I had, fought hard for my children’s rights and helped get my divorce over with quickly, saving me money….
Michelle P

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