Once your Chapter 13 has been confirmed you have a sense of relief because your financial chaos is finally under control. Your home is secure, your vehicles are secure. You’re feeling pretty good about life, as you should.
In your Chapter 13 you have between 3 years and 5 years to make your plan payments before your case is discharged. Often the stress and strain of finances puts a tremendous strain on relationships and marriages end in divorce. When a couple decides to end their marriage their Chapter 13 bankruptcy case is generally the last thing they are concerned with. It isn’t until the divorce lawyer brings up the division of assets and debts that this issue is addressed. A pending divorce unfortunately, can create a conflict of interest for your bankruptcy attorney. Your bankruptcy attorney represents you as a couple and it becomes difficult to navigate a case when the parties involved are no longer on the same page. In some situations your bankruptcy attorney will be forced to withdraw from the case in order to allow both parties involved to be properly represented. It is important when the divorce is amicable for both people to visit their bankruptcy attorney together in order to discuss options.
Often couples who find themselves on the verge of divorce will opt to remain in their Chapter 13 bankruptcy and continue to get through it together. Other times, however, they will choose to dismiss their case in order to make decisions based on their new situation. Regardless of how complicated or uncomplicated your divorce may be, it’s very important that you make an appointment with your bankruptcy attorney. Divorce can create havoc in your life and you want to make sure your financial situation remains under control, regardless of the new challenges facing you.