How Bankruptcy Impacts A Pending Divorce Or Foreclosure
Whether you have received a Petition for Foreclosure or are in the process of a divorce proceeding, you will need the guidance of an experienced lawyer to assist you in navigating through the legal process. The timing of a bankruptcy petition in these instances is crucial to the protection of your assets. It is imperative to consult with an attorney to understand how a bankruptcy filing may impact another pending legal matter.
At Kaeding Law Office, PLC, I provide knowledgeable representation to individuals in Council Bluffs, Iowa, and surrounding areas. If you are facing bankruptcy, I can advise you as to the effect your filing will have on a foreclosure or divorce. My services are designed to help you end the worries associated with overwhelming debt while also putting an end to foreclosure proceedings, garnishments and creditor harassment.
Bankruptcy And Divorce – How They Are Connected
Whether through negotiation between the two parties or an Order filed by a judge, the marital debt will be divided amongst you and your spouse. You may be responsible for paying the Visa bill and your spouse may be responsible for paying the Mastercard bill. However, by law, a creditor can attempt to recover from either spouse if one fails to fulfill his or her end of the bargain, despite a court order. You may find that a creditor or lender is attempting to recover from you or garnish your wages for a debt your spouse has failed to pay.
Going to court and filing a contempt action against your spouse for failing to pay his or her responsible portion of the debt is an option. However, in the meantime, creditors are still calling you and may even be garnishing your wages.
Fortunately, filing for bankruptcy will end the harassing phone calls from creditors and third-party debt collectors as well as halt any wage garnishments. Whether you file a Chapter 7 or a Chapter 13 bankruptcy, the unsecured debts (such as credit cards and medical bills) will be discharged and you will no longer be liable for the amounts owed to these creditors.
Bankruptcy: A Solution To Foreclosure
Being served a Petition for Foreclosure can be a harrowing event and a source of tremendous tension and stress. The idea of being evicted from your home is a disturbing concept but the most beneficial thing that you can do is remain calm and contact a bankruptcy attorney to review the options available to you. Once a bankruptcy petition is filed, the foreclosure action stops immediately. A Chapter 13 bankruptcy is commonly filed in these circumstances to allow a debtor to remain in the home and to catch up on the back payments owed to the creditor.
Received A Foreclosure Notice? Call Me Immediately.
To save your home from foreclosure, it is important to visit with a bankruptcy attorney immediately, especially prior to the sheriff’s sale of your property. As soon as you get notice of foreclosure or if you expect notice, call me and I will sit down and talk with you about the process. I will answer all of your bankruptcy-related questions and give counseling on how filing is likely to affect other areas of your life.
If you fear losing your home or are struggling with marital debt matters post-divorce, contact my office online or call 712-847-5882 to schedule a free consultation.
I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.