Divorce and Debt Relief: Family Law Firm Killeen Texas

by admin on November 4, 2010

Killeen Divorce Lawyer

One of the main features of the new bankruptcy regulation is the introduction of means test. Anyone who wants to file a Chapter 7 bankruptcy has to take part in a means test. The means test setsyearly income limits depending on household size as one determinate of eligibility.

If you are a party to custody case then call aggressive Bell County family lawyers now.

The division of payments and debts in a divorce should always consider the possibility that one party or the other might file for bankruptcy after the divorce. Alimony payments will not be discharged by bankruptcy but non-specific obligations from one spouse to the other can. Therefore, if the couple agrees that one spouse will give the other a lump-sum instead of continuous maintenance payments, it will still be considered as maintenance and so it cannot be discharged.

Divorcing couples often divide their joint credit card debts between them. However, if one spouse later declares bankruptcy, they can have their share of the debt forgiven and the credit card company will look to the other spouse to pay the entire bill. This risk might be mitigated by the divorce agreement stating that the credit card debt is not dischargeable and this agreement is brought to the (notice|attention} of the bankruptcy court.

Sometimes, one spouse will buy out the other’s interest in the home in exchange for payments to be made over time after the divorce. These payments may be discharged bybankruptcy and the spouse owed the money can protect him/herself by requiring the other spouse to execute a deed of trust or some other enforceable instrument as a future guarantee of payment.

The new bankruptcy laws have made child support payments the highest priority debt that must be repaid by anyone seeking bankruptcy protection.

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