When to lift the stay in Family Law and Divorce cases in Arizona
If you are involved in a divorce and bankruptcy concurrently, you may want to consider lifting the Automatic Stay after your bankruptcy petition is filed. A spouse who is also a creditor to an individual who has filed bankruptcy may file a request with the court to lift the Automatic Stay. This will allow that individual to proceed with financial aspects of a family law case, like property division.
How can an Arizona Bankruptcy Attorney assist me with family law issues that occur during a bankruptcy?
Your Arizona bankruptcy attorney won’t be able to draft or file motions for your family law case, but can definitely assist you in deciding which chapter of bankruptcy to file, and when. Arizona is a community property state, so you may not realize how much of your property your spouse is entitled to in a divorce, or how much debt your spouse incurred during the marriage for which you can be held responsible. You can also be pursued by creditors for debts that your spouse was ordered to pay in your divorce, and later discharged in bankruptcy.
Filing bankruptcy jointly before a divorce may clear both spouses’ debts and allow them to focus on assets instead of debts during property division. However, especially when both spouses work, it may be easier to qualify for a Chapter 7 bankruptcy after divorce. There are strict income limits for Chapter 7, and the spouses’ income will be combined for bankruptcy purposes. In Arizona, a single filer may make up to $52,319, but a married couple can only make $65,713 combined to qualify for Chapter 7.
Deciding When to File Bankruptcy when in a Family Law Issue
Making the decision about which chapter to file and when may not be a clear-cut decision, and there are countless potential moving factors when you’re involved in both family law and bankruptcy cases. To gain clarity about your upcoming legal battles, call today to schedule your free consultation with one of our expert Arizona bankruptcy lawyers.
Our staff and Arizona Zero Down Bankruptcy Attorneys have years of experience representing bankruptcy clients in conjunction with family law cases. Get your questions answered free of charge, and receive a reasonable quote for representation, as well as post-filing payment plans starting as low as $0 down!