Columbus GA Divorce Lawyer Bankruptcy and Divorce

How does bankruptcy affect my divorce in Georgia?

Columbus GA 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 undergo a means test. The means test uses annual income limits depending on household size as one criteria of eligibility.

The distribution of payments and debts in a divorce should always take into consideration the chances that one party or the other may file for bankruptcy after the divorce. Alimony payments will not be discharged by bankruptcy whereas 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 on-going maintenance payments, it will still be identified as maintenance and so it will not be discharged.

Divorcing couples generally allocate their joint credit card debts amongst them. However, if one spouse later declares bankruptcy, they can have the debt they agreed to pay discharged and the credit card company will look to the other spouse to pay the full liability. This risk might be minimized by the divorce agreement stating that the credit card debt is not dischargeable and this agreement is brought to the attention of the bankruptcy court.

At times, one spouse may buy out the other's interest in the house in exchange for payments to be made over time after the divorce. These payments could 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 rules have made child support payments the highest priority debt that must be repaid by anyone seeking to file for bankruptcy.
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The Law office of Scot Sikes handles family law in Columbus GA. Scot Sikes is a Columbus GA divorce lawyer & Georgia child custody attorney.

706-494-6900 - www.columbus-divorce.com

Fort Benning GA military divorce lawyer,
GA Uncontested Divorce - GA Contested Divorce - Separation - Spousal Support - Property Division - Alimony - Military Divorce - Contempt Actions in Divorce Cases - Child Custody modification - Child Support Modification - Child Visitation. Columbus GA Divorce lawyer and uncontested divorce attorney.