D is for Divorce – Issues to Consider before filing Bankruptcy and Divorce Bankruptcy and Divorce are very closely related; experiencing one often leads to the other. Sometimes, financial problems that are bad enough to lead to the filing of a Bankruptcy case can also result in the parties seeking a Divorce. Alternatively, when parties decide that their marriage is over, a Divorce can lead to the need to file a bankruptcy case on the part of one, or the other or both. Things to
C is for Child Support
C is for Child Support – a special status in Bankruptcy. In an effort to help in the enforcement of child support orders, the Bankruptcy Code gives priority status to unpaid child support. Priority Debts are generally non-dischargeable in bankruptcy, so a person who owes a priority debt will not be granted a discharge as to that debt under the Court’s discharge order. Keeping Current on Child Support is Mandatory. In the bankruptcy legislation that took effect in October of 2005, Child Support was given
B is for Bifurcate
B is for Bifurcate, which is a complicated word for a simple process. When you bifurcate a claim, you split it into a secured portion and an unsecured portion. Unsecured creditors in Chapter 13 are not paid interest. By bifurcating a claim, you can substantially reduce the amount you have to pay for certain items. Here is an Example of Claim Bifurcation Let’s look at an example. You are filing a chapter 13 case. You purchased a vehicle and financed it more than 910 days
The ABC’s of Bankruptcy – A is for Address
A is for Address – The Importance of Correct Addresses One of the most important things you should do as a debtor is provide your Tuscaloosa and Birmingham Bankruptcy lawyer a correspondence address for each of your creditors. The address is usually found on your statement. It is different from the payment address (the address to which you send your monthly payment). Understanding the difference in the two addresses is critical to your receipt of a bankruptcy discharge. Notices sent to a payment address will