Tag: Divorce File
Experienced Lawyers will Provide Advice when Juggling Divorce and Bankruptcy in New Jersey
Filing for Divorce and Bankruptcy plus deciding which one comes first.
Divorce is the cause of financial ruin for many couples, and inversely economic issues are one of the leading causes for divorce. We mismanage our money as couples because we were taught not to talk about it. Should a couple consider divorce and filing for bankruptcy in New Jersey, what should they do first? Unfortunately, there isn’t a cut-and-dried answer. Every situation is different and cannot be determined without analyzing the factors and conditions of the divorce and the bankruptcy. The optimal way to do this is by hiring a skilled bankruptcy and divorce attorney promptly.
Pros and Cons If I File For Divorce Before Bankruptcy in New Jersey
First, it is essential to determine what kind of bankruptcy you are filing for. Chapter 7 clears out your debts with the court’s approval. This process usually takes a few months. Chapter 13 is a reorganization of your debts, and you repay them using a payment plan. Some of the obligations may eventually be discharged.
Filing for divorce before bankruptcy may be more straightforward because the property and the debts will have been equally distributed in the divorce. The heavy lifting has been done. Also, if you are listing your income alone, there is a better chance you will qualify for Chapter 7 in terms of revenue. Your payments will be measured individually, increasing your opportunities to be under the income limit for filing for bankruptcy. Also, If you and your ex do not work together well, this is ideal as you won’t have to work with one another on the bankruptcy case.
Now the bad news is that filing for bankruptcy after your divorce means you have to pay your filing fee and attorney instead of sharing the expenses with your ex-spouse. Also, if your ex-spouse was ordered to pay a joint debt, like a medical bill during the equitable distribution of the divorce, but it was discharged in the bankruptcy, the creditor can still go after you to collect on it. You cannot go to family court to uphold the order that your ex pays the debt because the discharge from the bankruptcy trumps family court.
What If I File For Bankruptcy Before Divorce in NJ?
Most of the time, people choose to file for Ch.7 bankruptcy because it takes three to four months rather than three to five years. Also, Ch.13 involves a certain amount of repayment on the debtor’s part through a payment plan, while Ch.7 removes any qualifying debt. You are filing for bankruptcy before your divorce can delay the distribution of assets. You will be assigned a bankruptcy trustee to keep your assets in a bankruptcy estate. Those items will be sold, and your debtors will distribute the money.
The benefits to filing for bankruptcy before divorce is that you can get rid of debts and get out of contracts like a car loan or your mortgage (if your house is underwater, it has no equity). You and your spouse can use the same lawyer and file together. When filing jointly, your combined income must be below the “means test.” This is an analysis of your average monthly payment for six months before filing against the median income in your state. If you are in a one-income household, filing before your divorce will help you pass the means test because both of you have debt, but only one of you is earning a salary. Relieving some debts will make it easier for the wage earner to pay alimony in the future.
Advantages of Filing Together in NJ Courts
There are some advantages to filing together. The first is that you can double the exemptions in your bankruptcy profile. An exemption is an asset not placed in the bankruptcy estate, so it will not be sold to pay the creditors. This is an excellent way to keep more help than filing individually. Filing a joint petition will reduce the number of assets and debts distributed in the divorce proceedings. Moreover, the legal costs are lower when filing together and using the same lawyer. Also, couples who file together profess to a more organized divorce process when filing before their divorce.
Bankruptcy and Child Support in New Jersey
Bankruptcy does not discharge child support. It is impossible to include child support in the debt discharged by bankruptcy. There are times when a parent’s economic problems cause them to make late or partial payments, but they can file a motion to modify support until the situation improves. Medical bills or other debts incurred from a child’s care cannot be discharged either.
Why Is It Important To Include Credit Debt In Your Bankruptcy?
There are a few reasons you should include credit debt in your bankruptcy. First, credit cards are unsecured debt, Which means that whatever you purchase does not have to be returned, and your debt is not guaranteed against your house, car, or another asset. Second, if you and your spouse are preparing to divorce and the credit card debt is discharged for your spouse, the credit card company can go after you. It is essential to include that you must not make any luxury purchases or go on shopping sprees from six months of considering bankruptcy because, in all likelihood, that debt will not be discharged.
Advantage of Filing For Bankruptcy Before Divorce When it Comes to Joint Accounts
A joint filing can be challenging because it demands cooperation between spouses. The good news is it gets the debts and assets organized, making the distribution part of the divorce simpler and smoother. Legal fees and the time necessary to agree on everything are lessened because many of the decisions have already been made when it comes time for the divorce.
Navigate Through the Variety of Options and the Specifics of Your Divorce Case with Help from the Lawyers at Bronzino Law Firm in Brick & Sea Girt, NJ
Many are the pros and cons of filing for bankruptcy before or after your divorce. The only person who can advise you on your decision is an excellent lawyer. Each case is different, and your needs should be taken into account. It is scary to file for bankruptcy. What if you are refused? What if not enough debt is discharged? How long will my divorce take? There are so many questions.
At Bronzino Law Firm, LLC, we have many of the answers you need to move forward with your divorce and bankruptcy. Our goal is to stand beside you during the entire process and provide the representation you deserve as we analyze every angle and possible results.
The one mistake you don’t want to make is waiting too long. The sooner we can help you, the better. You can contact us from Freehold, Rumson, Red Bank, Manchester, Toms River, Middletown, Berkeley, and throughout Ocean and Monmouth County for additional assistance. Call us for your free confidential consultation at (732) 812-3102 or fill out here our convenient form.
How to save my marriage after the divorce has been filed?
Read on to learn more about what happens within the New Jersey Superior Court: Family Part system when one spouse files for divorce and whether the marriage can be salvaged after that fact.
Marriage is an ongoing commitment to growth. Throughout the trials and tribulations in life, spouses commit to weather the weather with their significant other. But a marriage isn’t simply a commitment to stay together for better or for worse. It is a legal agreement and legally binding contract that affects finances, assets, and everyone’s lives and livelihood in the family.
When one spouse decides to exit this legal contract, they file for divorce. Usually, there are specific grounds for this separation, and the partner follows through with the divorce. However, many spouses wonder, once one person files for divorce, is there a chance to save the marriage?
When one spouse files for divorce, an official court record is made; thus, the petition for divorce remains in the public record. Additionally, a docket number identifying the court filing is made and remains throughout the course of the case proceedings. The entry of a divorce filing into the official record and the issuance of a docket number sets the divorce into motion. Once the divorce is set into motion, the spouse who did not file for divorce does have a chance to oppose the filing for divorce, and the finalization of divorce is not inevitable. However, such opposition will take place in an official divorce court hearing.
One key consideration by the couple after one spouse files for divorce is the question: under what circumstances was the divorce filed with the court? Often, a couple navigating marital turbulence will have a conflict that instigates one partner filing for divorce. If a particular instance initiates the grounds for divorce and not a prolonged pattern or difference in life trajectory, an attempt at reconciliation or couples counseling could provide a grounded container for the couple to determine whether divorce or reconciliation is the most aligned route.
Reconciliation and its Enforceability
If a couple does decide to attempt reconciliation after the initial filing for divorce, they can file a legal document called a Reconciliation Agreement. A reconciliation agreement is a postnuptial or mid-nuptial agreement. It is developed to prevent a divorce or reroute the couple after one has filed for divorce after one partner has done something grounds for divorce or a partner has filed for divorce. To dismiss the divorce proceedings, one partner agrees to provide some asset or financial right to the divorcing/threatening partner in the case of divorce. This, then, provides an incentive to both parties to salvage the marriage. The partner who has filed for divorce agrees to remain in the marriage, and the other partner promises to forfeit some financial amount or asset should the marriage end.
Generally, such a detailed reconciliation agreement is considered sufficient by the Family Part court to dismiss the divorce filing. However, for the reconciliation agreement to stand under the legal purview in New Jersey, it must be straightforward and enforceable. So what is enforceable? The Superior Court judge will review the terms of the agreement to determine whether the agreement’s conditions reflect a fair interchange between parties, given the circumstances that provide grounds for divorce. Additionally, the judge will consider whether the circumstance or circumstances providing grounds for divorce are too great to render a reconciliation agreement a reasonable next step for the couple or whether the incident proved too extensive for a reconciliation agreement to be considered a fair and reasonable consideration, particularly for the party who filed for divorce.
To ensure that a New Jersey Superior Court judge deems your reconciliation agreement appropriate and legally binding, it is imperative to be specific about the steps to reconciliation, the financial or asset exchange that would happen, and detailed context surrounding the reason one party filed for divorce and the reasons that reconciliation is the most appropriate path forward for both parties. Provided sufficient information and a detailed account of the agreement’s terms, a New Jersey Superior Court judge will be more likely to grant the reconciliation agreement as legal, thereby dismissing the divorce filing.
Divorce Attorney Help You Transition the stages in your divorce process
At Bronzino Law Firm, our team of experienced divorce attorneys supports clients across Point Pleasant, Brick, Wall, Sea Girt, Spring Lake, and the greater Ocean and Monmouth County Areas in ensuring that all legal proceedings involving divorce and reconciliation are carried out in an expedited and complete manner.