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Adding insult to an already painful injury is hardly an avenue to
financial recovery. After the implementation of new Code changes, almost
all employees and business owners who earn a regular income will be
forced into Chapter 13. If earning over the median income for the state
of residency, 5 year plans are mandatory. During the plan, all
disposable income must be dedicated to trustee payments.
Filing bankruptcy during a pending divorce allows many debtors to
eliminate debts of the marriage. Permission of a spouse is not required.
A discharge resulting from an estranged spouse who files alone only
releases the debtor in bankruptcy, and because of the lack of privity,
the remaining spouse is liable for all debts of the marriage, alone. Men's
legal advice from a qualified bankruptcy attorney is highly recommended.
Especially, if child support payments and past debts are mounting,
inquire about income restrictions for filing Chapter 7, and the period
over which the means testing restriction is calculated - 180 days at
present.
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