As anyone who has gone through it can attest, divorce can be a great destroyer of wealth. Couple the stress of divorce with the stress of financial problems, and there can be seemingly no way out.
The Denver bankruptcy attorneys at George T. Carlson & Associates are here to help. We know what it takes to help clients facing all sorts of financial burdens – including court mandated divorce settlements, child support and alimony payments. In some cases, a party can face contempt of court motions or other sanctions for failure to comply with the temporary financial orders of the court. Upon filing, an automatic stay will be issued. This prevents all creditors – including a spouse and the court system – from taking collection or punitive action. This can keep you out of trouble in family law court, while permitting you and your attorney to discuss the best course of action to deal with your financial obligations.
Bankruptcy and your Child Support and Alimony Obligations
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 gave priority to alimony and child support payments over virtually all other types of debt, including back taxes. However, filing for bankruptcy in Denver can still be beneficial when dealing with child support and alimony obligations:
- It’s best to consult an experienced Colorado bankruptcy lawyer before you fall behind in payments. The threat of bankruptcy can bring a former spouse to the table and may even influence court decisions regarding modifications. While you will be responsible for the arrears, being proactive can assist in reducing future obligations.
- As we stated, filing for bankruptcy protection can prevent the court from taking punitive action against you for nonpayment.
- Filing for Chapter 7 of Chapter 13 bankruptcy in Denver can alleviate the obligations to pay all sorts of other debts, leaving you better able to cope with alimony and child support obligations.
- Filing for bankruptcy can alleviate you of the obligation to pay for joint liabilities, such as car loans, mortgages and credit card debts.
Divorce Settlements and Denver Bankruptcy
If your spouse fails to contest a discharge of settlement obligations, you may be able to discharge such debt through a Chapter 7 divorce. In a Chapter 13 bankruptcy, you may be able to discharge property settlement obligations regardless of the actions of your former spouse. A Denver bankruptcy lawyer can assist you in determining the best course of action; deciding whether a debt is a support obligation or a property settlement can be a complicated process and typically includes any number of variables, including:
- Are children involved?
- Is payment made in one lump sum or in installment?
- Are the payments subject to termination triggers, such as remarriage or adulthood of minor children?
In any event, bankruptcy will afford you many protections when dealing with divorce in Colorado. In short, it will put you back in the driver’s seat. Your former spouse will have a heavy burden of proof in showing changing financial circumstances and harm as a result of your decision to seek personal bankruptcy protection. Federal bankruptcy laws are a powerful tool that can help you get your financial house in order and can help protect you from unreasonable divorce demands.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
