Tulsa Bankruptcy and Divorce

 

Divorce During an Oklahoma Chapter 13 Bankruptcy

 Chapter 13 bankruptcies usually take between three and five years to come to completion. During this significant portion of your life, much can change. Divorce commonly occurs when couples are still working through a Chapter 13 plan, and it can have serious implications on your pending bankruptcy action. The following is a look at what happens if you seek a divorce in Oklahoma during your Chapter 13 bankruptcy. We discuss possible implications as well as what you can do to still succeed in obtaining the discharge of your debts. If youre facing a bankruptcy and divorce in Oklahoma call our Tulsa Bankruptcy Lawyers Today!

Your Bankruptcy Attorney May Need to Withdraw

If you and your spouse retained the assistance of a bankruptcy attorney to guide you through your Chapter 13 bankruptcy, the attorney is deemed to represent you both. Attorneys have an ethical obligation not to represent two parties when there is a conflict of interest in doing so. If you and your spouse are divorcing, this holds the potential to create a conflict of interest that may require your bankruptcy attorney withdraw from representation.

 Talk to your Oklahoma bankruptcy and Divorce Lawyers as soon as you believe a divorce is imminent. He or she can conduct a full assessment of the situation and determine whether withdrawal may be necessary.

Options for Completing Your Bankruptcy and Divorce

While obtaining a divorce during a Chapter 13 bankruptcy and Divorce can make it more difficult to complete your repayment plan, it does not require you dismiss the bankruptcy action. If you wish to continue your bankruptcy and obtain a discharge, there are several options available to you, including:

1. Continue Making Regular Plan Payments: Even if you divorce, you do have the option to simply continue making regular monthly payments. However, this can become burdensome if you and your spouse cannot agree on how to split payments. In addition, your monthly budget may well have changed due to the divorce, making the former plan unaffordable.


2. Convert to a Chapter 7 Bankruptcy: Your expenses may increase following a divorce. In some cases, this will be sufficient to convert your case to a Chapter 7 bankruptcy, if you were not able to qualify for Chapter 7 in the first place due to too much disposable income.


3. Modify Your Repayment Plan: If you cannot or do not want to convert your action to a Chapter 7, you may be able to modify your Chapter 13 repayment plan to allow for lower payments that you can manage following your divorce. You will need to file a motion, with the assistance of your bankruptcy attorney, outlining your change of circumstances and requested reduction in payments. If approved, you will be allowed to continue your Chapter 13 plan to receive a discharge.


4. Bifurcate Your Bankruptcy: You also have the option of separating your bankruptcy into two actions. You must request the court bifurcate your action, and with this action you will obtain the benefit of not being conjoined in a suit to your former spouse. Once the bankruptcy is bifurcated, you and your spouse can determine individually whether you wish to continue the action as a Chapter 13 or convert it to a Chapter 7.

Contact a Our Tulsa Bankruptcy and Divorce Attorneys:

Bankruptcy can offer a means of escaping from oppressive debt and starting a fresh financial future, but is never something to be undertaken without thorough consultation with an attorney experienced in this area of law. If you are considering filing for Chapter 7 or Chapter 13 bankruptcy, the Tulsa bankruptcy and Divorce attorneys at South Tulsa Bankruptcy can help. Call our Tulsa Law Office (918) 739-8984 to schedule a free consultation to discuss your bankruptcy options.

 

Tulsa Bankruptcy and Divorce

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