Liquidating assets prior to divorce
Liquidating assets prior to divorce - Yahoo adult dating sex
In the US, there are two types of bankruptcy laws – Chapter 13 and Chapter 7.
However, experts suggest that if the chances of bankruptcy are high and there is more debt than assets to divide between the couples, it is advisable to file for bankruptcy prior to starting the divorce process.In the US, Bankruptcy law can be complicated and hence you need to have the basic knowledge about the laws.This will help you to understand the difference between the types of bankruptcy and to realize which one will be suitable in your case.Most of your unsecured debts, such as credit cards, personal loans, repossessions, medical bills, and so on will be taken care of by Chapter 7 Bankruptcy laws and use the proceeds to pay off your debts, erasing the debts that cannot be paid in full.There are some debts that a Chapter 7 cannot wipe out.The Chapter 13 is another legal way to handle your debts.
Here a plan is made to pay back a portion or all of the debts that you owe.These debts include student loans, taxes, alimony, child support, and damages related to criminal restitution such as damages from drunk driving.After you have filed for Chapter 7 in the court, your creditors will no longer be allowed to call or harass you regarding your debt.A monthly payment will be determined, and you will make this payment each month to the Bankruptcy Trustee, who will then distribute the money to your creditors based on federal law.A couple can generally file a Chapter 13 if either they are behind on their house or car payments and want to keep their house or car; or they do not qualify for a Chapter 7 .When a couple files for joint bankruptcy, it lowers the costs as compared to when they file for bankruptcy separately after the divorce.