Divorce Can Be Complicated By Chapter 13 Bankruptcy in Chicago

08-May-2011 When a couple is suffering with overwhelming financial burdens it can take a toll on their marriage. Money is a major factor in determining the cause of a divorce. You would think that filing for divorce and filing for chapter 13 bankruptcy in Chicago would go hand in hand. Especially with a rise in the divorce rate that coincides with a rise in bankruptcy filings and foreclosures

In fact, it has been said historically that there are three reasons that people fall into foreclosure; they lose their job, get sick or lose their spouse. In 2009 Cook County saw 10,200 divorces and annulments. That's over 150 more divorces than 2008.

So how does a divorce proceeding effect a chapter 13 bankruptcy filing in Chicago?

Your Chicago bankruptcy lawyers will tell you that trying to file for divorce and bankruptcy at the same time is not a simple process. Those looking to end their marriage and get back on their feet financially though chapter 13 bankruptcy will be met with a complicated path ahead. Bankruptcy and divorce have one major thing in common. Anyone who files for either wants it done quickly. The first thing that happens when you file for chapter 13 bankruptcy is that all lawsuits against you are put on hold through automatic stay. This includes divorce proceedings. This means that your divorce cannot be finalized until you've completed the chapter 13 bankruptcy process.

The other interesting factor of divorce during chapter 13 bankruptcy in Chicago is that the bankruptcy court will have the final say in all settlement agreements. This extra approval can make it take a little longer to determine a settlement.

Chapter 13 bankruptcy in Chicago will allow you to keep you assets but in doing so you will be responsible for making a series of payments over the next few years. These payments will have to be considered during your divorce and will have to be written into all settlement documents. It is also a complication to hold onto assets that are to be divided up in divorce court.

It may seem reasonable that if you're hiring Chicago bankruptcy lawyers why not hire a divorce attorney too. There certainly isn't a law against filing for divorce and bankruptcy at the same time however the two legal matters clearly complicate each other. It is probably wise to focus on the one that is more pressing and wait until it's finalized before moving on to the other.

Whatever you do make sure that you hire qualified Chicago bankruptcy lawyers. Having a professional team on your side can make a complicated process more manageable.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.