Indianapolis Bankruptcy & Divorce Attorney
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.
Marion County 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.
Should You File Bankruptcy Before Or After You Divorce?
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, Angela Trapp can advise you and take the necessary steps to help you get debt relief.
What Happens to Bankruptcy During Divorce?
While this obviously sounds very complicated, it does happen. Because assets need to be liquidated and moved around during a divorce, it’s possible to declare bankruptcy immediately thereafter. But the “thereafter” is important. You can declare bankruptcy and divorce simultaneously, but you will usually be advised to finish the divorce and then go through the process of bankruptcy. However, good divorce planning may involve some bankruptcy planning at the same time. The goal for your divorce, and your bankruptcy, should always be to protect as many of your assets from creditors as possible.
And often this is the wisest thing to do. If a divorce has left you with considerable debt and few assets, bankruptcy may make the most sense. Alternatively, if you and your spouse both have a lot of debt and few assets, it may make more sense to declare bankruptcy first and then get divorced.
Can You Get Divorced During a Bankruptcy?
Generally, it is in your best interest to complete your divorce prior to filing bankruptcy, since you may be awarded a large amount of debt from your divorce proceeding. You are only allowed to file a Chapter 7 Bankruptcy every 7 years, and Chapter 13 Bankruptcy every 5 years, so it makes more sense to complete your divorce, determine your assets and debts, then conduct some bankruptcy planning to preserve what is left your savings, and assets acquired during your marriage.
Does Bankruptcy Clear Divorce Debt?
Yes and no. Bankruptcy can potentially clear debt related to your divorce, such as housing costs, credit card bills that were run up because of a temporary stay elsewhere, or legal fees. But bankruptcy cannot clear spousal support, child support, or other support orders, or joint tax debt that are associated with the divorce.
Should You File for Divorce and Bankruptcy at the Same Time?
No. You should never declare divorce and bankruptcy at the same time because it’s better to complete one before the other. Always talk to an attorney first about which you should do first. They should be able to tell you whether you should declare bankruptcy first or divorce first. It depends on your personal situation. If one of you has more debts than the other (possible, depending on your situation), it makes more sense to divorce and then declare bankruptcy.
Debts That Are Included in Bankruptcy
Student loans are generally excluded from bankruptcy. Further, settlements (such as divorce settlements like alimony) are not included in a bankruptcy, so you can’t declare bankruptcy and hope to get out of spousal support or child support. Otherwise, most debts will be included in the process of bankruptcy, including the discharge of debts acquired during your marriage. You can ask your attorney for more information.
How Much Does a Bankruptcy Cost in Indiana?
A bankruptcy is going to vary depending on how complex the process is. You can actually apply for bankruptcy on your own if you want to, but there will be filing fees. It’s usually better to consult with a lawyer to find out how much it will be.
Free Consultation — Contact Trapp Law, LLC
For a consultation with an experienced divorce attorney, contact Trapp Law, LLC.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.