Getting a divorce can be a confusing and challenging time for anyone. After spending years combining your finances, you may find yourself suddenly laden with debts that you cannot pay.
Rather than risk the stability and happiness of your future, you might benefit more by asking the court for a total liquidation or reorganization of your debts. By retaining the services of a divorce, mediation, or chapter 13 lawyer orlando fl plaintiffs like you may be able to rebuild your future with as few worries as possible.
Deciding the Best Chapter to File
The type of bankruptcy you file for will depend on your particular financial situation. If your divorce decree has left you with half of the marital debts to pay, you may find it difficult to satisfy these terms especially if you have just gone back to work or do not earn a lot of money.
When you cannot pay off all of your creditors in a timely manner, you might ask the court to forgive or liquidate your debts. In this instance, your lawyer may advise you to file for a Chapter 7 bankruptcy, which would wipe out most or all of what you owe and give you a new financial start.
However, if you earn enough money to pay off your debts or you filed for Chapter 7 within the last eight years, you may still qualify for a Chapter 13 reorganization bankruptcy. This type of filing allows the court to consolidate all of what you owe and have you make monthly payments on the total debt. You may be given up to six years to pay off the amount, during which time the creditors cannot take any other collective action against you.
Your lawyer can advise you about what type of chapter to file during or after your divorce. You may want to get the fastest financial resolution to your debts. You could qualify to have them totally liquidated by the court or have them reorganized so you can make regular monthly payments on them.