Schedule Your Free Consultation
Bankruptcy is All We Do Divorce Debt

Our team is ready to provide your case with the attention, skill, and compassion that it deserves.

Schedule Your Free Consultation Today

Divorce Debt Attorney in Springfield

Divorce is one of the leading causes of bankruptcy. Often debt problems are part of the stresses leading to divorce and bankruptcy. The main issues to be addressed in a divorce are:

  • Who gets the kids
  • Who gets the property
  • Who gets the debt

While bankruptcy does not help you decide who gets the kids and the property, it can help ease issues over who gets the debt. If a couple files a joint bankruptcy before their divorce is final, they can eliminate the issue of dividing debt that is discharged in bankruptcy.

However, many factors should be considered when determining the best course of action when contemplating divorce and bankruptcy. For example, your income and liability on debts may affect the timing of your bankruptcy and the chapter of bankruptcy you file.

Likewise, the language in the proposed divorce decree and marital settlement agreement should be carefully reviewed by an experienced bankruptcy attorney to determine your best options in a bankruptcy case.

If a couple does not agree to file a joint bankruptcy, and it does require some cooperation, then care should be taken by the party deciding to file bankruptcy by him or herself. While a joint bankruptcy before a divorce is usually the best option, there are some circumstances when an individual bankruptcy may be preferable.

Who Is Responsible for Marital Debt After Divorce?

The need for bankruptcy can sometimes be better assessed after the divorce is final. Keep in mind that if you are liable for a debt, your problems are not over if the divorce court orders your ex-spouse to pay that debt.

There is a common misconception that the division of debt in a divorce decree changes who a creditor may pursue when a debt is not paid. However, a creditor can still pursue both parties on a joint debt, regardless of who was assigned the debt in the divorce.

If your former spouse does not pay the debt, the creditor can then collect against you, and you cannot use the divorce court's order to defend against that collection as you are in fact still liable for the debt.

The divorce court's order to pay alimony or child support can never be eliminated by bankruptcy. However, joint debts divided between the parties can be eliminated if evaluated appropriately by an attorney who is familiar with both Chapter 7 bankruptcy and Chapter 13 bankruptcy.

It is important to hire an attorney who handles both chapters because the language in a divorce decree can impact the ability of certain debts to be discharged in Chapter 7 and Chapter 13 cases.

This is one of the reasons why the decision to consult with a bankruptcy attorney prior to your divorce being finalized is in your best interests if there are joint debts from the marriage.

If you are talking to a divorce attorney while contemplating divorce, you should also consider talking to a bankruptcy attorney to consider whether a bankruptcy before or after the divorce will be the most beneficial. Additionally, if you hire a bankruptcy attorney and divorce lawyer, they can work together to get the best result for you to eliminate debt.

Contact Us Today

Our lawyers collaborate with family law attorneys to ensure the language in your divorce decree is worded to protect you if you need to file bankruptcy. We frequently see errors in debt and property settlements and in divorce decrees that negatively affect a client’s ability to discharge debt in bankruptcy. These errors can be prevented if you get proper counseling from an experienced Chapter 13 and Chapter 7 bankruptcy lawyer in Springfield.

Schedule your consultation by calling (417) 213-5006 today.

Real Clients. Real Reviews.

Read What Real People Have to Say
    You guys have been great!

    “I will need to reach out but you guys have always been prompt in your responses and guidance. Thank you for being awesome!”

    - G.D.Z.
    It was the first time I had felt comfortable in the office of a bankruptcy law firm

    “It was the first time I had felt comfortable in the office of a bankruptcy law firm. I had the misfortune of visiting a different bankruptcy firm first and soon as I walked through the door I felt like I was being judged. I did not plan on having health pr”

    - Tabby K.
    I liked everything about Licata Bankruptcy Firm.

    “Very professional listened to me and provided information to assist me further. She was very honest and upfront about my financial situation.”

    - Betty C.
    I can't brag enough on Paige

    “I can't brag enough on Paige. She was very welcoming at my first appointment. Easy to talk to and explains everything so that you understand! I can not even start to explain how much she has helped me. I will always recommend her and Licata Law Firm to any”

    - Becky H.
    We were 100% satisfied with Licata

    “We were 100% satisfied with Licata. Very professional and courteous. Anytime we had a question they were quick to answer. We would recommend them to anyone.”

    - Todd T.

Ready to Discuss Your Unique Case?

Schedule Your Free Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.