Monday, September 21, 2009

Divorce & Bankruptcy Worlds Collide

The US is in the midst of a bankruptcy boom. Bankruptcy filings in the US topped more than 1 million in the calendar year 2008--- reaching 1,074,225 cases. An increase in 2009 is projected.  The causes of consumer bankruptcies are many, including family breakup/divorce, high debt load, foreclosure, an interruption in income due to job loss, and sustained high medical costs.

The interrelationship between (a) federal bankruptcy laws and (b) state substantive and procedural laws presents issues vital to the state court process, especially in the area of domestic relations. Divorce and bankruptcy are alike in that each attempts to provide a "fresh start." However, the objectives of a divorce case are not necessarily consistent with the goals of a bankruptcy case. The divorce fresh start is from the former spouse. It attempts to divide assets, apportion debt and provide support for the disadvantaged spouse and minor children.

Bankruptcy provides a fresh start for debtors from creditors, and attempts to discharge debts and distribute non-exempt assets among creditors. Recent changes to the US Bankruptcy Code make it harder and more expensive to discharge certain obligations that arise in a divorce, and help illustrate the differences between the objectives of bankruptcy law and family law. Source: American Bankruptcy Institute.

Warmest Regards,

Bob Schaller

Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm

Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.

I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.

For information about Chapter 7 bankruptcy Click Here

For information about Chapter 13 bankruptcy Click Here

You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at learn about how the bankruptcy laws can help you.

NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.

I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.

No comments:

Post a Comment