Posts Tagged: ‘bankruptcy and divorce’

Bankruptcy & Divorce: Which comes first?

July 14, 2017 Posted by kingcade

Going through a divorce can be stressful enough, but when you pile on financial issues the effects can be overwhelming.  Your financial situation can be greatly affected by a divorce, as divorce is commonly cited as the leading cause of bankruptcy.  Here are some important facts you should know when it comes to bankruptcy and divorce.

  1. Do not file for divorce and bankruptcy at the same time.  This is for the sake of simplicity.  People typically file bankruptcy before divorce for several reasons.  Once you file for bankruptcy an “automatic stay” is put in place.  This is a court order that prohibits creditors from contacting you and protects your property and assets.  This hold is in effect throughout the bankruptcy process.
  2. Chapter 7 bankruptcy is ideal for a quick divorce.  One of the benefits of filing for Chapter 7 is the timeline.  A Chapter 7 bankruptcy typically eliminates all dischargeable debts within three to six months, allowing you to file for divorce relatively soon after.  In comparison, a Chapter 13 bankruptcy establishes a three- to five-year payment plan for you to pay off your debt, which can drag your divorce out longer.
  3. Conditions of Bankruptcy. Abiding by the rules listed in the Bankruptcy Code is critical for having your debts discharged.  A Chapter 7 discharge may be denied if the debtor:
  • Fails to provide requested tax documents;
  • Hides property for the purpose of defrauding creditors;
  • Destroys financial books or records;
  • Commits perjury in connection to the bankruptcy case;
  • Violates a court order;
  • Fails to complete the mandatory credit counseling course.

Bankruptcy and divorce are chances for you to make a fresh start for you and your family. However, both of these processes can be extremely complex and detailed in nature.  You should consult with an experienced bankruptcy attorney and have a strong divorce attorney on your side who can guide you through the process and obtain the most successful outcome for you.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources: http://www.divorcemag.com/monthly-newsletter/5-things-to-know-about-bankruptcy-and-divorce

When Filing for Bankruptcy- Timing Matters

July 7, 2017 Posted by kingcade

Timing the filing of your bankruptcy is important to obtain the best possible outcome in your case.  For example, waiting to file after creditors have already taken action against you can result in unnecessary legal costs and potential loss of property.  Filing shortly after transferring money or property to someone else, can run you the risk of being accused of bankruptcy fraud.

Here are a few points to remember when timing the filing of your bankruptcy:

Filing for bankruptcy will stop litigation.  It is best to file before a creditor receives a judgment against you.  This will save you the cost of legal fees and giving the creditor more rights to your property.

Prevents wage garnishment.  A creditor who has obtained a judgment against you can force your employer to deduct money from your check, even require your bank to withdraw the funds directly from your account.  You can save this money by discharging the debt before such actions can be taken.

Puts an end to creditor harassment & collection calls. As soon as you file for bankruptcy, creditors must stop contacting you and deal only with your attorney.  Creditors who continue to contact you are in violation of the U.S. Bankruptcy Code’s Automatic Stay and face sanctions by the Court.

Allows you to stay in your home. Filing for bankruptcy will stop the foreclosure process and allow you additional time to stay in your home.

Divorce & Bankruptcy: If you are in the middle of a divorce, it is best to file a joint bankruptcy with your spouse to discharge all debt before the marriage ends.  However, if your income is too high to qualify as a married couple you will need to decide whether the best option is to file individually while you are still married or wait until after the divorce.  When it comes to timing your bankruptcy filing while going through a divorce, you cannot go wrong setting up an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future.  Many offer free consultations and Saturday appointments.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://bankruptcy.lawyers.com/bankruptcy-basics/time-matters-when-filing-chapter-7-bankruptcy.html