Bankruptcy And Divorce in Indiana
Financial problems are often a contributing factor in divorce. They can also arise after the divorce when a divorced person must support a household on one income rather than two.
At Trapp Law, LLC, our Indianapolis family law lawyers have solutions for people who are dealing with financial problems caused by unmanageable debts. If you intend to get a divorce, we can represent you during the process, to protect your rights and prevent you from getting saddled with an unfair portion of marital debts. We also provide debt relief solutions through Chapter 7 and Chapter 13 bankruptcy proceedings.
If you have debts that are out of control, contact us today. Indianapolis divorce attorney Angela Trapp can review your case and discuss possible solutions with you.
Which Should I File for First- Bankruptcy or Divorce?
If you are in the process of filing for divorce, the timing can be critical. There are many factors that can affect when you should file these two very important claims. A Chapter 7 or Chapter 13 bankruptcy can provide you with debt relief and a fresh start. However, the timing of bankruptcy is an important consideration. In some cases, it can make sense for a couple to file joint bankruptcy before divorcing. In others, you may be better off divorcing first and then filing bankruptcy. As a family law attorney who also practices bankruptcy law, our Indianapolis divorce lawyer can advise you and take the necessary steps to help you get debt relief.
You should file for divorce first if:
- Your joint income is too high to qualify for Chapter 7 bankruptcy.
- It can move certain assets outside of the trustee’s influence.
- It will allow for support considerations.
You should file for bankruptcy first if:
- You and your spouse are on good terms.
- You plan to wipe out your debts together.
- You have contracts together you need eliminated. (ex: car loans that are too high or mortgages that are completely underwater.)
What Debts Are Not Included in Bankruptcy?
While bankruptcy can help lighten the financial troubled that have been weighing you down, it does not completely wipe out everything that you are responsible for. The following debts are not included in a bankruptcy following:
- Child support
- Student loans
- Fines due to government agencies
- Court fines and penalties
- Attorney fees for previous court cases
Indianapolis Attorney For Debt Division In Divorce
In Indiana, marital assets and debts must be divided during the divorce process on an equitable basis, not necessarily on an equal basis. If a marital asset has encumbrances (such as a mortgage on a home or loan on a car), you could be stuck with the responsibility for the debt, even if that asset is transferred to your spouse as part of the divorce settlement.
Angela Trapp is a lawyer with extensive experience negotiating property division settlements during the divorce. In your case, Ms. Trapp will take appropriate measures to protect you from getting burdened with an unfair division of marital debts.
Free Consultation — Contact Trapp Law, LLC
For a free consultation with an experienced divorce attorney in Marion County, contact Trapp Law, LLC.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.