Glen Burnie Bankruptcy During Divorce Attorneys

Skilled Lawyers Handling Bankruptcy Concerns During Divorce in Glen Burnie, Maryland

Divorce can come as a major shake-up to your financial situation. Many couples accumulate debt during their marriage, and this debt does not go away on its own during a divorce. Depending on how your marital assets are split up, you could be left to pay off a significant amount of your spouse's debt on your own. With the help of a Glen Burnie divorce and bankruptcy lawyer, you can address these debts and work toward financial stability.

At Zide Law Group, LLC, we have decades of experience helping clients with complex issues of family law. When you work with our firm, you will receive individualized legal services tailored to your needs as we explore your options for filing for bankruptcy.

What Debts Am I Responsible for in a Divorce?

Your marital estate is the sum of all of your property, assets, and liabilities from your marriage. Naturally, this includes debts as well. If you have a prenuptial or postnuptial agreement in place or you are willing to negotiate with your spouse, you could settle the division of debt outside of court. However, if negotiations break down, you may have to litigate the division of debts in court.

In Maryland, the courts handle property division according to what is equitable to both parties in a divorce. Any debts that your spouse accrued prior to your marriage are likely to be considered separate property, and therefore not your responsibility. However, any debts you acquired during the marriage could be considered marital property, such as the mortgage on your marital home, car loans, and credit card bills.

When allocating debt, the courts will consider the length of the marriage, the contributions you and your spouse each made to the marriage, and the economic resources available to you and your spouse. At Zide Law Group, LLC, we can speak on your behalf in court as we negotiate for a favorable split of debt.

Chapter 7 Bankruptcy

If you want to eliminate a large quantity of marital debt in a relatively short amount of time, you could consider filing for Chapter 7 bankruptcy. This option allows you to liquidate your non-exempt assets to pay off your unsecured debts, which refer to debts not backed by collateral. These unsecured debts may include your medical bills, personal loans, credit card bills, though certain other debts like tax obligations and child support payments may not be able to be discharged.

Since Chapter 7 bankruptcy can be completed rather quickly, you could consider filing for it while you are still married to your spouse. However, you might only be eligible for Chapter 7 bankruptcy if you fall within a certain income.

Chapter 13 Bankruptcy

Chapter 13 allows you to roll your secured and unsecured debts into a manageable repayment plan to be completed in three to five years. The main benefit of this option is that you do not have to give away your property or assets to satisfy your creditors. Over the course of three to five years, you will make contributions to this repayment plan, which will give priority to your most pressing debts. Upon completion of the plan, most of your remaining unsecured debts will be discharged.

Chapter 13 bankruptcy is a long-term commitment, so if you intend to get divorced in the near future, it may be best to wait until the divorce proceedings have been finalized before filing for Chapter 13 bankruptcy.

Meet With a Glen Burnie, Maryland Divorce and Bankruptcy Lawyer Today

Are you dealing with financial strain from your marital debts? Zide Law Group, LLC can help. Our Glen Burnie divorce attorneys are here to look out for your needs, exploring your options for financial relief through bankruptcy. To schedule an initial consultation, call us at 410-760-9433 today or contact us online.