Divorcing With Debt

Houston Divorce Lawyers Resolving Marital and Financial Troubles

Given the current state of the economy, a high percentage of people are entering divorce with a considerable amount of debt. Concerns arise over how to dispose of a marital home that has an upside-down mortgage, how to allocate responsibility for credit card debt or other marital liabilities, how to preserve assets if one or both spouses decide to file for bankruptcy, and how to resolve other complex financial issues in divorce.

As a law firm offering comprehensive family law and consumer bankruptcy services, Myres & Associates, PLLC, has the depth of experience and knowledge clients need when confronting the intermingled issues of divorcing with debt as well as dealing with debt resulting from divorce.

When Divorce and Bankruptcy Go Hand-In-Hand, Which Should Come First?

Filing for bankruptcy at the right time can effectively resolve many issues and simplify matters needing to be decided in divorce. We can offer experienced advice to address complex concerns when contemplating filing for bankruptcy while filing for divorce:

• Should you file for a Chapter 7 bankruptcy to discharge unsecured debt and eliminate anxiety about future liability for an ex-spouse's debt?
• Should you consider a short sale of one or more of your properties?
• Should you file an individual Chapter 13 bankruptcy to save property that you will be awarded in your marital agreement?
• Should you file for bankruptcy before filing for divorce or wait until your divorce is finalized before filing for bankruptcy?

Is Bankruptcy Necessary to Deal With Debt Problems?

As experienced divorce and bankruptcy lawyers, we recognize that while bankruptcy can alleviate financial concerns in some situations, bankruptcy is not the right solution for everyone. What many people do not realize is that there may be debt relief solutions available outside of filing for bankruptcy — solutions that protect assets, preserve government benefits and achieve other client goals. After fully analyzing your situation, we recommend a combination of solutions to achieve your goals. In some situations — particularly in cases where government benefits or health benefits may be of concern — we may recommend creating a marital separation agreement that resolves asset and debt issues without severing the legal marital relationship. In other situations, we may advise refinance options, debt negotiation solutions and other strategies to solve the full picture of legal issues — both in the marriage and financial status of the spouses.

Many clients leave our office after one visit stating "I feel so much better after I've talked to you."

Contact Our Houston Divorce and Bankruptcy Attorneys

To schedule a confidential consultation with an experienced lawyer, call 713.581.8167 or toll-free 866.506.1221 or contact us online.