Helping you Figure Out your Bankruptcy Issues
There are times when divorce and bankruptcy issues overlap, and this is a more complicated scenario to handle. Both areas are under pressure. Whether your divorce is the result of stress caused by a bankruptcy petition, you have more decisions to make about how to divide your assets. Hence, before taking any crucial step, it is highly recommended to consult with an experienced bankruptcy lawyer.
Divorce complicates bankruptcy even further. These are the legal circumstances where the assistance of a competent lawyer is necessary to touch on the technicalities of your issues. In Missouri, Jeppson Law is a credible bankruptcy and divorce law firm that you can trust in Missouri.
Since 2011, our team has been dedicated to protecting the rights of consumers residing in Kansas City. By being consistently diligent in rendering legal services, Joseph Chaddick Jeppson has also been a member of a number of associations, such as the American Bankruptcy Institute. If you are looking for a credible, experienced, and reputable law firm, hiring us is your best decision. Get help now!
Why do I need a Bankruptcy Lawyer in Missouri?
Dealing with a divorce case is already frustrating, much more so when you are handling bankruptcy simultaneously. This complex legal process requires the legal help of an experienced bankruptcy attorney. Below are the important characteristics that a divorce and bankruptcy lawyer must have:
- Empathy – There are a lot of bankruptcy lawyers in Kansas City, but only a few can thoroughly listen to you and put themselves in your shoes. A bankruptcy lawyer must take time to understand your situation, no matter how complicated it is. Bankruptcy cases do not just involve legal aspects but also the feelings of every client.
- Reputable – Many clients overlook the importance of reputation. A well-known divorce and bankruptcy attorney will expedite and simplify the process.
- Knowledgeable – Perhaps the most important characteristic of a lawyer in this practice area is extensive knowledge of bankruptcy and divorce law. You don’t want a lawyer who is incapable of interpreting complex state law provisions or navigating the entire legal process, look for a knowledgeable and competent firm.
Jeppson Law has served many individuals in Kansas City since 2011. You deserve fastidious attention. We will take our time in understanding not only your case, but your feelings and emotions while dealing with it. We listen to all your concerns and share our knowledge by providing accurate information and wise legal options. Contact an experienced bankruptcy attorney today!
Bankruptcy or Divorce—which one should I file first?
Married couples may come to the point of reaching divorce and bankruptcy as their last resort. The most common question that we are often asked is which one should go first. More often than not, couples would rather go for a divorce first and then deal with the financial side of the case afterward. However, as a general rule, we recommend filing for bankruptcy first before filing for divorce.
Regardless of whether you are planning to file for Chapter 13 or Chapter 7 bankruptcy, it is imperative not to take your debts for granted before getting divorced. This is important for the following reasons: (1) wiping your debts out means that there is a simple issue to deal with in the case of divorce; and (2) you might be unable to extinguish the debts if you are required to pay them according to the divorce decree and marital settlement agreement.
If you still cannot figure out what to file first, contacting an experienced Bankruptcy lawyer will help you.
The Limitations of Bankruptcy
If you pursue a bankruptcy petition after or during the divorce proceedings, there is a big chance that you will still owe the debts of your ex-spouse as assigned by the family court. As long as your name is stated on loan, the creditors will regard you as one of the debtors. Thus, once your ex-spouse no longer makes payments, the creditors will look after you. It is worthwhile to remember that child support and spousal maintenance cannot be eliminated by filing bankruptcy.
How do Divorce and Bankruptcy Affect Each Other?
In Missouri, divorce can have a significant impact on bankruptcy proceedings, as it affects how assets and debts are divided between the parties involved. Here are some key points to keep in mind:
Missouri is an equitable distribution state: In Missouri, assets and debts are divided according to the principle of equitable distribution, which means that the court will strive to divide property fairly, but not necessarily equally, between the parties. This can complicate bankruptcy proceedings, as it may affect the value of assets that are subject to bankruptcy exemptions.
Missouri bankruptcy exemptions: In Missouri, individuals filing for bankruptcy can choose to use either federal or state bankruptcy exemptions. State exemptions include homestead exemptions, personal property exemptions, and exemptions for retirement accounts and insurance policies. However, the amount of the exemptions can vary depending on whether the individual is filing for bankruptcy alone or with a spouse.
Chapter 7 bankruptcy and divorce: If one or both spouses are considering filing for Chapter 7 bankruptcy, it’s important to understand how the divorce may impact the bankruptcy. For example, if the parties are still legally married at the time the bankruptcy is filed, their joint income and assets may be taken into account when determining eligibility for Chapter 7. Additionally, any property division agreements reached during the divorce may affect which assets are eligible for bankruptcy exemptions.
Chapter 13 bankruptcy and divorce: In a Chapter 13 bankruptcy, the debtor enters into a repayment plan to pay off their debts over a period of three to five years. If the debtor is also going through a divorce during this time, it may be necessary to modify the repayment plan to reflect changes in income or expenses. This can be a complex process, and it’s important to work with an experienced bankruptcy attorney to ensure that the plan is feasible and legally valid.
Overall, the impact of divorce on bankruptcy in Missouri will depend on the specific circumstances of each case. If you’re considering bankruptcy and are going through a divorce, it’s important to seek guidance from a qualified bankruptcy attorney who can help you navigate the legal process and protect your rights.
How to File for Bankruptcy in Missouri?
You can self-assess or, much better, consult with an experienced bankruptcy lawyer to see if your debts are dischargeable in bankruptcy and whether you can use your exemptions to protect your assets. As soon as you pass the bankruptcy means test, you can proceed with applying for Chapter 7 bankruptcy with the help of your bankruptcy lawyer.
If you are not qualified to file for Chapter 7 bankruptcy due to issues such as the necessity to protect your property from foreclosure or your car from repossession, you may consider filing for Chapter 13 bankruptcy.
The Cost of Petition for Bankruptcy
The cost of your bankruptcy petition, like the cost of a divorce, will always vary depending on a variety of factors. As a result, it is critical to consult with an experienced bankruptcy lawyer, as this is not something to be taken lightly. To estimate the average cost of filing for bankruptcy, these factors must first be understood. This can help you decide which chapter to file.
Call our Bankruptcy Attorney in Kansas City Now!
It is completely normal to have a lot of questions at this point. This article does not cover every aspect of the divorce and bankruptcy processes, and it should not be used as a substitute for legal counsel. Regardless of how much information you obtained from this article, you should still consult with an experienced bankruptcy attorney.
Your problems deserve careful and diligent attention; choosing Jeppson Law will give you the excellent legal services that you need. With more than a decade of strong commitment to helping clients, our legal team can give you the best possible outcomes. Other than Chapter 7 and Chapter 13 bankruptcy, we also handle Credit Repair cases. Get help from us today!