${site.data.firmName}${SEMFirmNameAlt} Main Menu
Call Today: 855-805-0595

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.




No Comments

Leave a comment
Comment Information
2015 Top 100 Lawyers - ASLA Lead Counsel Rated Rated By Super Lawyers American Legal Institute | America's Top Attorneys 2016 Nation's Premier Top Ten Ranking 2016 | NAFLA 10 Best 2014-2017 | 4 Years Client Satisfaction | American Institute of Family Law Attorneys ™ Avvo Rating 10.0 Superb The National Trial Lawyers National Association of Distinguished Counsel | Nation's Top One Percent National Academy of Jurisprudence Rue Rating | Best Attorneys Of America | Lifetime Charter Member The National Advocates Top 100 Lawyers | America's Premier Attorneys Law Firm 500 | 2016 Honoree America's Top 100 Attorneys American Jurist Institute Top 10 Attorneys American Jurist Institute Top 10 Attorneys 2017
Stange Law Firm, PC

Stange Law Firm, PC
256 NE Tudor Rd.
Lee's Summit, Missouri 64086

Toll Free: 855-805-0595
Fax: 314-963-9191
Law Office Map