About Bankruptcy

• Eligibility
• When Should You Consider Filing?
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
• Fair Debt Collection Practice
• Warning on Debt Relief Services

• Bankruptcy’s Do’s and Don’ts
• The Facts That You Need To Know
• Mandatory Disclosures
• The Automatic Stay
• Exploring Your Options – Alternative to Bankruptcy
• Bankruptcy and Family Law

Bankruptcy and Family Law

How Does Bankruptcy Affect a Divorce?

Financial problems frequently go hand in hand with family law issues.  Not having enough money can create damage in your marriage or cause problems with a child support claim. Bankruptcy is a common theme in family law matters.. Either upon splitting up, the spouses can’t pay the family debts, or one spouse seeks to use bankruptcy as a weapon against the other spouse, or the other spouse’s lawyer.  Further, after couple’s divorce, it can be difficult to adjust to living on one income if you have been used to dealing with two. Not surprisingly, family law and bankruptcy often seem to go hand in hand.

Consideration

Bankruptcy during divorce presents a lot of issues. In most cases you and your spouse share debts so, prior filing for bankruptcy, you must understand and consider how this will affect the other person. You also need to consider the effects of property division on bankruptcy, especially if you have complex assets.

When bankruptcy and divorce or another family law issue arises at the same time, questions in connection of the laws in each area create, such as:

1. Can my spouse and I file jointly for bankruptcy while we are going through a divorce?
2. How are common debts separated if I file for bankruptcy and my spouse does not?
3. Do I still need to pay child support if I file for bankruptcy?
4. Are spousal support obligations discharged in bankruptcy?
5. What happens if I lose my job while I am in Chapter 13 bankruptcy?
6. My home is in foreclosure. Will we lose our equity in our divorce?

Guidance

For those divorcing or divorced, the bankruptcy issues generally fall into three categories:

1. Support: discharge, payment and the automatic stay.
2. Property settlement: what happens to debts owed by both spouses?
3. Liability to others: who is liable for the debts at divorce?

For these and other questions, it is important that you get concrete answers from an attorney who knows bankruptcy inside and out. Attorney Lozano’s dynamic approach to bankruptcy and family law has worked well for our clients. Find out what we can do for you!

You Deserve a New Beginning

At Lozano Law Offices, we understand all aspects of Chapter 7 bankruptcy and Chapter 13 bankruptcy. We work closely with clients who are facing bankruptcy during a divorce. We welcome the opportunity to meet with you and discuss your particular situation.  To schedule a free initial consultation, call us at (510) 538-7188 or contact us online.