Bankruptcy and Divorce
Hello, this is Jeff Kelly! I'm a bankruptcy attorney, in the Northern District of Georgia. Today, I want to talk about Bankruptcy and Divorce, and the number one issue, that we need to consider, if somebody's going through a divorce, are the ethical implications, and what that is, your attorney has a duty of loyalty, to both the husband and the wife, so if they're going through a divorce, this can present a conflict, this can be very difficult situation, and when an attorney gets caught, in the middle of a case and the clients are getting divorced, the most ethical thing to do, is for the husband and wife to both fire the attorney, and hire a new attorney, so that that way they both have individual attorneys, that represent them and have a duty of loyalty to them and to them only.
In reality most clients don't do that, because that cost a lot of extra money, so every now and then, with Chapter 7 we'll have a couple coming in, that's about to go through divorce, and they will want to go ahead and file the Chapter 7 together, because it doesn't cost any extra for a husband and wife to file together, whereas if they file individual cases, they're going to double their costs, double the transaction cost. Now the only time this really works is, number one, when they both come in, and they're willing to waive all of the potential ethical conflicts, now, if there is an actual conflict, your bankruptcy attorney cannot represent you, you'll have to get individual attorneys, but if there's a situation where husband and wife are coming in they both want to file Chapter 7, they're about to go through a divorce, they want to get a clean fresh start, and move on, and they're going to surrender all their assets, and there's not going to be, you know, if you're surrendering every asset, we're wiping everything out, there's really not much potential for conflict, but let me describe a situation, where there most definitely would be a conflict, and we've seen this happen before.
Our client comes in, you got a husband and wife, and you have a car, and the wife really wants to keep this car after the divorce, but the problem is, the car is in the husband's name only, this is a conflict because it's in the best interest of the wife to keep the car, however, it's in the best interest of the husband, to surrender this car in the Chapter 7 because, this is his chance to get his name off the car, otherwise, if let's say you go through a Chapter 7, and the husband reaffirms the debt on the car, in other words he reallocates himself in the car, so that his soon-to-be ex-wife, can keep the car this can be problematic, when you know, two, three years, down the road, if she gets into trouble and she doesn't make the payments, well, guess who's gonna be left holding the bag, and who's going to end up having to pay the balance, so, that is an example of a true serious conflict, and either it has to be resolved before the case is filed, or they're gonna have to get separate lawyers for the Chapter 7
Let's talk about chapter 13, if someone is about to go through a divorce, there's no reason to file a Chapter 13 together, because Chapter 13, typically runs for 3 to 5 years, and in almost every divorce case, people are trying to move on, and get a new start with their life, there's no need to be bound together in the same case. Now, another question we often have, is somebody's in the middle of Chapter 13 and they filed everything, was going great, now, they're getting a divorce, what happens?. Well, again, if there is ever if there's ever any conflict, that arises between the husband and wife, they're gonna have to fire the attorney.
The attorney is gonna have to quit the case we have had situations, where people have worked it out and they've continued to have the same bankruptcy attorney threw their case, even though they do get a divorce, but you must understand, if there is a conflict, if something arises, then, you know, we have a serious problem, let me give you an example for a Chapter 13.
Let's say you're in chapter 13, and the husband wants to quit the case, he's sick of it the wife doesn't, because, let's say, there's some asset that's being paid, that she wants to keep, well, the bankruptcy attorneys not just going to be able to dismiss the case, he's gonna have to withdraw from the case, and that spouse that may have the Chapter 13 payment coming out of their paycheck, they're going to need to meet with another attorney, and that new attorney is going to have to do that, because that, the bank the bank's returning the first case has a duty of loyalty to both, and they can't take any action against one, that might hurt the other, so banking divorce is a very complicated situation, but if you have any questions I hope you'll check out my website it's www.kellycanhelp.com or you can give me a call at (706)295-0030.
Divorce & Bankruptcy Attorney in Kennesaw, Georgia
Numerous individuals identify divorce as the primary reason for filing bankruptcy. However, preparing can simplify and reduce the costs of your bankruptcy and divorce. Whether you should file bankruptcy before or after a divorce depends on where you live, the value of your assets and debts, and the form of bankruptcy you desire to file.
A bankruptcy case is initiated when a person, married couple, or business files official bankruptcy paperwork with the court. A married couple filing in tandem will file a "joint petition" comprising the combined financial details of both spouses.
Divorcing couples often file together since it is more efficient. For instance, filing a joint petition has the following advantages:
- The bankruptcy will wipe out or discharge the qualifying debt of both spouses, so lowering the divorce court issues, and
- It is less expensive to declare bankruptcy jointly than separately.
However, married couples are not required to file together. If one partner needs bankruptcy protection urgently, it may make sense to file individually. Or either spouse may find it easier to qualify for bankruptcy after the divorce if their incomes have fallen simultaneously. When possible, however, many couples find that filing jointly simplifies divorce proceedings.
Call the Georgia-based Law Office of Jeffrey B. Kelly (Kelly Can Help) for legal advice regarding divorce and bankruptcy. In our law offices, consultations are completely gratis. Our bankruptcy attorneys, who have successfully handled family legal issues, will go into a detailed examination of your financial status, answer all of your questions, and offer the most effective strategy for settling your debt during this consultation. Contact us now!
Why Do I Need a Bankruptcy Attorney in Georgia?
Divorce and bankruptcy are more prevalent than many assume. Financial difficulties exacerbate the hardship of a change that is already challenging. If you are contemplating divorce and have financial difficulties, you may ask if you need an experienced bankruptcy lawyer.
In many instances, divorcing spouses dealing with financial difficulties can benefit from engaging with a bankruptcy attorney. Your divorce attorney assists you with various issues, but they likely lack the necessary specialized skills to support you with bankruptcy and other major financial concerns.
How do you determine if you should hire bankruptcy counsel during your divorce?
Consider the following if you are struggling financially and contemplating divorce:
Do you have mutual debts?
If you and your spouse have joint debts, such as a mortgage or credit card debt, you will need to determine how these debts will be handled in the divorce. A skilled Georgia bankruptcy lawyer can assist you in negotiating with your spouse over who will be accountable for paying off the debt.
What is your current financial status?
If you have substantial debt, filing for bankruptcy may help you get back on your feet financially. A Georgia bankruptcy attorney can explain the different types of bankruptcy and help you assess if they are appropriate for your situation.
How far along is your divorce?
If you have already filed for divorce, your bankruptcy attorney can assist you in safeguarding your assets throughout the property division. If you are considering filing for divorce but have not yet done so, your attorney can advise you on how to protect your finances in the case of a divorce.
What are your long-range objectives?
Your bankruptcy attorney can assist you in developing a strategy to reestablish your credit and financial stability after filing for bankruptcy. If you are also going through a divorce, your attorney can advise you on how to preserve your assets and finances throughout the distribution of property.
Are your financial assets secure?
Even if you do not intend to file for bankruptcy, you should talk with a bankruptcy attorney before beginning the divorce process. Your attorney can evaluate your assets and conceive a strategy to prevent the courts from dividing them.
Having financial protection will ensure that the divorce does not result in significant financial hardship. As you can see, there are numerous advantages to engaging a bankruptcy attorney throughout a divorce.
Chapter 7 vs. Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcy is important to know when you get into financial trouble in the United States. Chapter 7 bankruptcy is the most common type of bankruptcy, and it involves the liquidation of assets that may be used to pay off part of what you owe. Chapter 13, also known as reorganization bankruptcy, is done to repay or cancel your debts. Both Chapter 7 and Chapter 13 have pros and cons, so it's crucial to weigh them when deciding which to use for your situation.
The elimination of unsecured debts, such as credit card debt and medical bills, is the primary objective of filing for bankruptcy under Chapter 7 bankruptcy. A discharge is typically granted within a few months after filing for bankruptcy under Chapter 7, so it can be finished as quickly as possible before the divorce is finalized.
On the other hand, if you file for bankruptcy under Chapter 13, you will have to repay some or all of your obligations according to a repayment plan. This process can take anywhere from three to five years. Because the filing process for bankruptcy under Chapter 13 can be time-consuming, it may be in your best interest to do so individually after the divorce has been finalized.
Call our Bankruptcy Attorneys Now!
Hearings that follow cases involving bankruptcy and family law are typically challenging and emotionally charged. The complications and challenges that could arise in situations involving both types of law are typically numerous and difficult to understand.
Struggling with debt? In need of some legal advice from our law firm? Our legal practice is happy to assist you.
At the Law Office of Jeffrey B. Kelly (Kelly Can Help), located in Georgia, you can confer with a bankruptcy attorney with extensive experience in divorce law related to bankruptcy cases. Legal help with our attorneys is always treated as private and kept in strict confidence. Connect with our bankruptcy law firm for a free consultation on any legal issue now.
DISCLAIMER : The information contained on this page is for information only. It is not intended to be legal advice, nor should you make legal decisions based on this information. Please consult with me to see how the law applies to your particular situation. We are a debt relief agency. We help people obtain relief from their creditors by helping people file bankruptcy.
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"Jeff and his team do great work. They are fast and easy to work with. I would suggest working with them if you need to file for bankruptcy. Thanks Kelly Law Group!
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