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Bankruptcy and a Recent Divorce

If you are newly divorced or about to get a divorce, you may need to figure out how you are going to deal with your marital debt and any debt incurred from the divorce process. In certain circumstances, bankruptcy is the only way to deal with the aftermath of a divorce. The following are some things you need to know if you intend to file for bankruptcy in the midst of a split.

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What to know

If you are newly divorced or about to get a divorce, you may need to figure out how you are going to deal with your marital debt and any debt incurred from the divorce process. In certain circumstances, bankruptcy is the only way to deal with the aftermath of a divorce. The following are some things you need to know if you intend to file for bankruptcy in the midst of a split.

Gather Your Documents

Once you decide to file for bankruptcy after your divorce, you need to first collect all the documents you need to start the process. You need any information about your income for the prior few months. This includes paycheck stubs, W2 tax statements, 1099 statements, and any additional information that provides proof of any income you received.

You also need to get copies of your last tax returns and any documentation proving your assets. This includes bank statements, retirement accounts, and other assets.

In addition, you should provide a list of your debts. This includes loan statements and credit card bills.

Because you are no longer married, you only need to provide the income information for your own income, not the income of your spouse. However, your other documentation.

may have the name of your former spouse if you filed taxes jointly or held joint bank or credit card accounts.

Because you are recently divorced, you should also provide a copy of your divorce decree and any information regarding support obligations you have. This may include statements for child support, spousal support, or documentation of your property settlement.

Fill Out Bankruptcy Documents

The next step is to fill out the forms to file for bankruptcy. This can be complex, so be sure to ask your attorney for assistance if you need help. The forms are time-consuming because the application process is lengthy.

The forms include your bankruptcy petition, all the schedules, your statement of financial affairs, and any additional information required.

Because you are newly divorced, you have to pay special attention to a few details. The first area to pay attention to is the personal information section. You need to provide your legal name at the time of the bankruptcy filing. Keep this in mind if you have changed your name since the divorce. You can note any recent name changes on this area of the form.

There is also a section to list your income. This includes not only your payment from your employer or your business but also any child support or spousal support you receive from your former spouse. Your spouse's income should not be listed since you are no longer married.

On the statement of financial affairs, you will list your divorce as one of the legal proceedings that took place within the last year if that is the case for you. If you gave any property to your spouse in the divorce, be sure to include this information as well.

If you have any unpaid support or issues with your property settlement, you should include this information in your documents too.

File Your Case

After you complete your bankruptcy paperwork, the next step is to file your bankruptcy case. You will have to pay a filing fee based on the type of bankruptcy you file. Print out the paperwork and file it with the bankruptcy court. If you are unsure about this process, your attorney can help you.

You will eventually have to have a creditor meeting with your debtors. You should have your attorney with you, if possible, for this meeting.

If you have any further questions about the process, please contact us at the Havner LawFirm for assistance. We can guide you through the complexities of bankruptcy, even after a divorce.