What You Should Know About Divorce and Bankruptcy
By Maureen Kroll, RN, MN, JD
Divorce And Bankruptcy
Many times the consequence of going through a divorce is financial
devastation. Now one household is split in two, with double the
expenses, without any financial help from family or other sources, one
or both spouses may have to file for Bankruptcy.
Serious health problems or loss of income are other major precipitators
of financial distress. Many people fear the stigma of filing for
bankruptcy. However, one’s credit rating is most likely not good anyway.
It is illegal for creditors or collection agencies to harass you or make
threats if a bill is past due. Of course they can ask to be paid, but
cannot call you at work if you have notified them in writing that you do
not wish for them to do that.
Filing a bankruptcy petition will stop creditors from continuing the
debt collection practice. If you want to deep certain items such as your
car or certain credit cards, those debts can be reaffirmed, that is you
can continue to keep those credit cards or your car. You may also be
able to keep your home depending on the amount of equity in the
property.
The Bankruptcy Law has changed. Now a debtor must complete an assessment
to determine if he qualifies for bankruptcy protection. This “means
test” looks at the debtors income and expenses, and one must meet this
criteria before filing the bankruptcy petition. Next, protection is
still available in some way either through a complete dissolution of
assets or a reorganization wherein only a certain amount is paid on a
debt over a period of time. Most attorneys will have an initial meeting
on a reduced fee or complimentary basis. Investigating this remedy for
debt relief should not be overlooked.
Service Area
Attorney Maureen Kroll provides services in Westmoreland County, PA, including the communities of Greensburg, Irwin, Jeannette, Ligonier, Mt. Pleasant, North Huntingdon, Latrobe, and Scottdale.
