Everyone has the right to file for bankruptcy protection, according to federal law. Regardless of your age, your marital status, and whether you are employed, you have the right to ask the bankruptcy court to discharge your eligible debts that you cannot pay. 

People who file for bankruptcy come from all walks of life, but recently divorced people account for a disproportionate share of bankruptcy filings. Divorce has never made anyone feel rich, and every recently divorced person must find a new financial normal, which almost always involves cutting expenses. 

For stay-at-home parents, it also means reentering the workforce. Despite your new job and your newfound frugality, the first few years after divorce are still lean times. In some cases, it makes sense to discharge old debts that were unmanageable while you and your ex-spouse were married and are still unmanageable now. If you are happy to be single again but bummed out about still being broke, contact an Oakland Chapter 7 bankruptcy lawyer.

Marital Debts Hurt Twice as Much in California

In a divorce, the spouses must divide their marital property as well as their marital debts. Debts are considered marital if you incurred them during the marriage, regardless of which spouse signed to borrow the loan or which spouse swiped the credit card. Most couples reach an agreement during mediation about how to divide their marital assets and debts. If they cannot reach an agreement, the case must go to trial, which is where California’s community property laws enter the picture.

In California and several other vast states west of the Mississippi River, the law requires judges in divorce trials to divide a couple’s marital assets and debts evenly in half or as close to evenly as possible. By contrast, equitable distribution states look at each spouse’s overall financial situation to determine the fairest way to divide marital property and marital debts. 

This means that if your divorce case goes to trial, you will get stuck with half of the marital debt even if your ex-spouse has a higher income than you and owns more nonmarital assets than you do. To add insult to injury, it also means that the court will assign you responsibility for half of the debt even if it was your ex who incurred 95 percent of the debt and if your ex’s irresponsible spending was a major factor that led to the breakdown of your marriage.

The good news is that most of the residual debts from your marriage are dischargeable in bankruptcy, for example, medical bills, credit card debt, and personal loans. It is not possible to discharge alimony and child support obligations in bankruptcy, but it is possible to discharge other debts to free up funds for these court-ordered obligations.

Contact the Law Office of Melanie Tavare About Filing for Personal Bankruptcy

A debt relief lawyer can help you file for Chapter 7 bankruptcy if you are recently divorced and cannot afford to pay the debts that wrecked your marriage. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.