Declaring Bankruptcy During Divorce
When a divorce is imminent, it can feel like your world is falling apart. For couples with lots of debt, the situation can seem even more desperate. Sometimes, the divorce process involves the decision for one or both parties to file for bankruptcy. While the attorneys at Gagne McChrystal De Lorenzo & Burghardt do not represent parties in bankruptcy, they are knowledgeable about the process and how it affects divorce. Whether for a recommendation to a bankruptcy attorney or for preparation of documents to protect parties before, during and after they’ve filed, having an experienced family law attorney to support you through the process of divorce and bankruptcy can help to alleviate both emotional and financial stress.
The resourceful divorce lawyers at Gagne McChrystal De Lorenzo & Burghardt offer straightforward yet compassionate legal representation to clients undergoing divorce. We provide extensive legal knowledge, for numerous family-related issues, including: legal separation, divorce, spousal maintenance, child custody, child support and property division — all of which can be affected by bankruptcy.
The Benefits Of Filing Chapter 128
Unique to Wisconsin, Chapter 128 allows residents to amortize debts, and make payments over 36 months without accruing interest or penalties. You can file Chapter 128 jointly with a spouse, or as an individual. Because you can file this type of bankruptcy at the circuit court level, it does not interfere with divorce proceedings and can offer parties a more affordable head start on debts they’re assuming in their settlement.
Benefits of filing Chapter 128 during a divorce are:
- Easy to file
- Payments can be made directly to the trustee
- The monthly payment may be less than the minimum payments due on the total of debts
- It can prevent and/or stop a garnishment, which can intercept a large portion of someone’s net income
Certain debts cannot be included in a Chapter 128, including vehicle loans, mortgages, child support, taxes and student loans.
The attorneys of Gagne McChrystal De Lorenzo & Burghardt can assess your circumstances, assist you with filing a Chapter 128, and offer you legal options during another legal process or on a separate basis.
We Can Help Renew Your Financial Situation
Our lawyers are highly skilled, not only in the legal process of divorce itself, but also in advising on bankruptcy issues. Let us help you start over financially. Schedule a consultation today at our Milwaukee office. Please call 414-914-2833 or email us a request.