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Divorce, bankruptcy and your mortgage

30773695_S.jpgResidents in Missouri who are facing the difficult and emotional decision of having to end their marriage may also have other decisions to wrestle with. If financial problems are part of the marital issues, people may also be struggling with how to reconcile these problems as well. If the financial challenges are severe enough and bankruptcy is a viable options, consideration should be given as to what type of bankruptcy might be best and when it would be most appropriate to file for that bankruptcy relative to when a divorce filing is made.

As explained by The Balance, if a person or a couple feels that a Chapter 7 bankruptcy is appropriate for them, they may want to consider doing this jointly before they initiate their divorce proceeding. This will allow them to benefit from higher exemption rates which may result in them being able to keep some assets that they may otherwise lose if one spouse filed a solo Chapter 7 bankruptcy regardless of the timing of that filing.

If a home is one of the assets potentially at risk of being lost in a bankruptcy, Chapter 13 plans may offer alternatives to spouses who want to retain their family homes. However, because this type of plan lasts up to five years, it may be best to complete the divorce first before looking at the bankruptcy.

Bankrate does caution spouses and homeowners about the potential pitfalls of retaining a family home after a divorce. Regardless of what a divorce decree or even a quit claim deed says, if the mortgage is in both people's names, that debt remains joint.

 

 

 

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  • Saint Louis County: 120 S. Central Ave., Suite 450, Clayton, MO 63105: Clayton Office
  • West County: 16024 Manchester Rd., Suite 103, Ellisville, MO 63011: Ellisville Office
  • Jackson County: 256 NE Tudor Rd., Lee's Summit, Missouri 64086: Lee's Summit Office
  • Jefferson County: 16 Municipal Drive, Suite C, Arnold, MO 63010: Arnold Office
  • St. Charles County: 2268 Bluestone Drive, St. Charles, MO 63303: St. Charles Office
  • Franklin County: 5 S. Oak St. Union, MO 63084: Union Office
  • Lincoln County: 20 Centerline Drive, Troy, Missouri 63379: Troy Office
  • Boone County: 1506 Chapel Hill Rd., Suite H, Columbia, MO 65203: Columbia Office
  • Greene County: 901 E. St. Louis, Suite 404, Springfield, Missouri 65806 Springfield, MO Office
  • St. Clair County: 115 Lincoln Place Ct., Ste. 101, Belleville, IL 62221: Belleville Office
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  • Sangamon County: 400 S. 9th St., Suite 100, Springfield, IL 62701: Springfield Office
  • McLean County: 1012 Ekstam Drive, Suite 4, Bloomington, IL 61704: Bloomington Office
  • Johnson County: 7300 West 110th Street, Suite 560, Overland Park, KS 62210: Overland Park Office
  • Sedgwick County: 2024 N. Woodlawn Street, Suite 407, Wichita, Kansas 67208: Wichita Office
  • Monroe County: 116 W. Mill St., Waterloo, IL 62298 (by appt. only): Waterloo Office
  • St. Louis City: 100 S. 4th St., #549, St. Louis, MO 63102 (by appt. only): St. Louis Office
  • Jackson County: 2300 Main St., #948, Kansas City, MO 64108 (by appt. only): Kansas City Office

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