Unfortunately, bankruptcy and divorce can go hand-in-hand. After paying a divorce attorney, court filing fees, child support, spousal support and adding living expenses after the split, many clients emerging from divorce look to bankruptcy for debt relief. Whether bankruptcy after divorce will help these individuals depends upon the type of debt.
Child Support is a domestic support obligation under the Bankruptcy Code and as such is non-dischargeable. In short, you can’t eliminate past and future child support with bankruptcy. End of story.
If your income or circumstances have changed since the previous child support order you may want to consult with a child support lawyer to see if you can modify the child support order in family law court.
Alimony (spousal support) is likewise a domestic support obligation & thereby not eligible for discharge in bankruptcy.
If there’s been a change in circumstances (ex. income) since the previous order you may want to speak with family law attorney Michael Benavides to explore modification.
Credit Card Debt & Loans
Credit card debt and unsecured loans can be discharged in both chapter 7 bankruptcy and chapter 13 bankruptcy. The only asterisk is that recently incurred credit card debt (within the past 90 days or really large purchases shortly before bankruptcy) may be challenged in an adversary proceeding as fraudulently incurred debt excepted from discharge – but that challenge is rare and avoided with experienced bankruptcy counsel. To learn more about your bankruptcy options call our office at (707) 200-6688 for a free consultation with attorney Michael Benavides.