If you are going through a divorce with debt, you may be wondering what steps you should take. Reach out to our firm today to speak with a skilled Newburgh bankruptcy lawyer. We are on your side.
Should debt be split between two divorcing parties in New York?
If you are unsure about how debt should be divided when going through a divorce, it is essential to recognize that it will go through the same process as dividing assets. When it comes to dividing a divorcing couple’s assets, the process of equitable distribution is conducted by New York courts. Note that equitable distribution does not imply that the debt will be divided equally, as it instead will be divided fairly. In the event that you are going through a divorce with debt, you should not expect an even split. The court will take the following aspects into consideration when determining the equitable distribution of a couple’s debt:
- The income of each party
- The health of each spouse
- The age of each spouse
- The length of the marriage
- The value of your marital assets
- The amount of debt the couple has
- The earning capacity of the couple
- The standard of living that the couple is accustomed to
- The monetary and non-monetary contribution each party has made to the marriage
Do not hesitate to reach out to our skilled New York bankruptcy firm today if you have questions regarding how a court might separate you and your partner’s debt. With the assistance of our experienced legal team, you will be able to recognize your options and determine the best choice for you. Contact us today to discuss the details of your case today.
Should I file for bankruptcy with my partner even during a divorce?
In the event that you and your spouse are on good terms, you may want to learn more about your options for filing for bankruptcy jointly. If you decide to take this path, you may reduce the risk of competition in a divorce. For instance, instead of having a fight over who will pay off the credit cards, a chapter 7 discharge can make issues that are irrelevant. Some of the other advantages of filing jointly can involve reduced case costs because you will have one instead of two shared costs since each party will be contributing to the attorney’s fees and court filing fees, lowering some possible conflict, and speeding up both parties’ financial new beginnings.
Reach out to our firm today to speak with a qualified attorney if you are going through a divorce with debt and would like to learn more about filing for bankruptcy. With the help of our skilled legal team, you can feel more confident knowing that your case is in the right hands. Contact us today to learn more about how we can support you.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.