Divorce is a common reason that leads to the end to file bankruptcy to settle debts. Residents who live in Indiana can file for bankruptcy after their divorce case is final. If they have joint accounts with their former spouse, it is not necessary to file a claim together. However, everyone who files must fulfill the income eligibility requirements before they complete a bankruptcy claim for court submission.
The First Step
All claimants who wish to file for bankruptcy must complete the credit-counseling program as outlined in the 2005 Bankruptcy Act for the state of Indiana. They must present proof of completion to their preferred attorney before the claim’s process begins. Additionally, the claimant must provide the attorney with six months worth of documentation to show all sources of income, their assets, and proof of ownership for all property they own.
The initial assessment used by attorneys is to determine which chapter the claimant is eligible to utilize. According to the changes in federal laws, the petitioner must have an annual income of more than $64,936, which is the median income for Marion to qualify for chapter 13. However, if the claimant qualifies for chapter 13 and prefers the liquidation process used in chapter 7, he or she can file for this form of bankruptcy. Click here for more details.
Realities of Filing After A Divorce
All debts are included in your claim in most cases. This does include joint accounts. If you opt to pay off joint accounts, you had with your former spouse through your claim, he or she may be entitled to a portion of the exemption for any properties included. It is important for you to make provisions through your attorney to protect your interests in these cases. For example, if you were awarded the property during the divorce, you must prove that the other party doesn’t hold any interests in it to acquire the full exempted value.
Divorce is among the most stressful occurrence in your life. If you possess a large portion of the marital debt after it is final, you could face significant financial hardships. If you wish to file a claim for chapter 7 or 13, you should contact a Bankruptcy Attorney Marion IN today. If you need to speak to a Bankruptcy Attorney Marion IN today, you can visit now.
