Filing for Chapter 7 After A Divorce

Many couples argue over money. One spouse may be cheap. Another spouse may be a spender. The couple may be in conflict about their credit card bills, the mortgage or car payments. Debt can cause a relationship to fall apart.

A divorce may establish clarity in a couple’s private life, but does not make debt disappear. Couples who split may enjoy living apart, but filing Chapter 7 bankruptcy may be on the calendar after the divorce paper wars. An experienced New York bankruptcy attorney is the place to go to get answers to bankruptcy questions and analyze the financial situation after a divorce. Filing for Chapter 7 can be another step to stabilize life further after a divorce, and then enjoy a fresh start – financially as well as emotionally.

A Chapter 7 bankruptcy involves:

  • Debt & Bankruptcy Analysis – determining which debts are dischargeable
  • Preparation and filing of the Chapter 7 Petition
  • Preparation and filing of the Chapter 7 Schedules
  • Correspondence with Creditors
  • Representation at the 341(a) Meeting of the Creditors
  • Preparation and filing of any revised Chapter 7 Schedules and/or Forms
  • Monitoring the case to ensure a discharge

To qualify for relief under Chapter 7, the filing debtor must be an individual, a partnership, a corporation, or other business entity. An individual, to qualify for Chapter 7, must satisfy “means testing.” Means testing is a mathematical calculation used to determine whether an individual qualifies for a Chapter 7 based on income, the median income for the person’s residential area, and certain “allowable expenses” established by the government. Means testing determines whether a person will have enough income over the next 5 years to repay debts based on government standards. If income falls short of the government standards, then a person qualifies for Chapter 7.

Chapter 7 bankruptcy begins with a mandatory credit counseling course which all debtors must complete prior to filing a petition. The course can be taken virtually over the Internet. Approved courses are listed at the Department of Justice website.

Once the debtor completes a credit counseling course, the next step is the filing of a petition. The petition sets forth the debtor’s contact information, estimated debts, and number of creditors. The filing of the petition imposes an “automatic stay” on collections which applies to all creditors. The automatic stay stops creditors from collecting against a debtor while the bankruptcy case is pending. Any creditor who continues collection actions may be in violation of federal law and subject to penalties.

After a divorce, consider consulting with an experienced New York bankruptcy attorney to get finances squared away.

Table of Contents

Have Tax Law Issues?

Contact Us

Miami Florida Tax Articles

Florida Tax Guide Is Social Security Taxed in Florida Federal Tax Benefits of Retiring in the State

Florida Tax Guide: Is Social Security Taxed in Florida? Federal Tax Benefits of Retiring in the State of Florida 2023

Social Security benefits serve as a vital source of income for many retirees. As individuals near their golden years, understanding the nuances of Social Security taxation becomes crucial. In this

September 11, 2023
Florida Tax Information for Taxpayers and Tax Professionals Do I Need to File State Income Taxes in

Florida Tax Information for Taxpayers and Tax Professionals: Do I Need to File State Income Taxes in Florida? Role of Florida Department of Revenue

Are you a resident of the Sunshine State wondering about your state tax obligations? Understanding whether you need to file state taxes in Florida is essential to ensure compliance with

August 28, 2023
Florida State Tax Rate Is There An Income Tax in Florida Everything You Need To Know About Fl ()

Florida State Tax Rate 2023: Is There An Income Tax in Florida? Everything You Need To Know About Florida Tax. Florida Income Tax Calculator

In a world where state income taxes are the norm, Florida stands out as a haven for residents seeking a reprieve from this financial burden. The Sunshine State has gained

August 18, 2023

Have More Questions?

If you have not found the Tax & Accounting answers you are looking for, feel free to search here and browse our article catalog!