Although Texas is a no-fault divorce state, misdeeds by one spouse may factor into property division. So, it may be prudent to include issues like adultery, abandonment or cruelty in the initial petition for divorce. Under Texas law, at least one spouse must have resided in the state for at least six months prior to filing for divorce. Pursuant to 11 U.S.C. §, “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.” karacto.xyzon Texas Bankruptcy Lawyer - Principal Office: I.H. 10 West, Suite , San Antonio, TX Phone: 5. If you file bankruptcy during a divorce, you may need to hire a new attorney. If you and your spouse hired a divorce attorney together, you may need to begin searching for a new one. If you, or your spouse, decide to file for bankruptcy during your divorce proceedings, your divorce attorney cannot represent both of you.
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An uncontested divorce is more likely to move quicker and be far less costly because there is nothing that the spouses are arguing about, which makes the court's job of issuing a divorce decree easier. An uncontested divorce requires no trial and is often accomplished without an attorney. Filing for an uncontested divorce in Texas is relatively straightforward, especially if there's no involvement with minor children.
Before you can even file for an uncontested divorce in Texas, you or your spouse must continuously reside in the state for the six months immediately prior to filing for divorce. If neither spouse meets this requirement, you cannot file for a divorce in Texas. A Petition of Divorce is the form you will submit to the court that formally starts the divorce proceedings. You can obtain this petition from the county clerk's office in the Texas county district court where you are a resident.
You must provide the required information, such as you and your spouse's contact details, information about your finances, debts and property, proposed settlement arrangements, and reasons for requesting a divorce.
Once completed, sign the petition and file it with the clerk's office. You need two copies of the form. Once you pay the filing fee, the clerk assigns a case number and stamps your petition as received. Deliver the second copy of the divorce petition to your spouse.
You can either hand deliver it yourself, have the county sheriff's office deliver it, or hire a private party to serve the papers. You must obtain proof of service, which is subsequently filed with the clerk's office. The clerk's office will set a day for your court hearing after you complete the necessary paperwork.
Filing bankruptcy first allows you both to share the cost of attorney and filing fees and could possibly protect you from paying joint debt — which could be beneficial if you and your spouse own property together. Filing for bankruptcy first also simplifies the division of assets in divorce because they are typically divided during the bankruptcy process — although they can sometimes change.
If you and your spouse choose to file for chapter 7 bankruptcy, your joint income might put you over the income threshold for filing. If your individual incomes are below the threshold, you may want to explore the options of filing for divorce before bankruptcy.
One of the benefits of chapter 7 bankruptcy is the timeline of the process. Chapter 7 eliminates all dischargeable debt typically within three to six months, allowing you to file your divorce sooner if you choose to file bankruptcy first.
In comparison, chapter 13 bankruptcy sets up a three- to five-year payment plan instead of completely eliminating debt, and can possibly drag your divorce or separation out longer than necessary. If you are involved in a chapter 13 bankruptcy and decide to file for divorce during the repayment period, you can choose to cancel or restructure the bankruptcy plan. By canceling, you agree to stop the agreed upon payment plan; however, all debt you and your spouse have assumed will still be your responsibility.
If you choose to restructure the plan, it divides the plan into two cases — one for you and one for your spouse; you can then handle the bankruptcy separately from your partner. These cases can become complex if not handled properly and can cause a lengthy divorce if anything goes awry. The most common types of nondischargeable debts include:. In addition to the debts that are outright nondischargeable, there are other ways certain debts can be barred from discharge.
In Texas which is a community property state, many people who file for divorce often choose to file for bankruptcy or at least consider the possibility of filing bankruptcy to address their debt arising from their former marriage.
Bankruptcy can sometimes be a way to get control or regain control of your personal finances in certain divorce situations. In the State of Texas and everywhere else in the United States as far as we know, there is no law that says that two people must stay married. There are however, laws that hold people who were once married liable for certain financial responsibilities for the debts incurred while they were married or obligations that arise out of marriage dissolution such as child support, spousal maintenance or alimony.
Despite a divorce decree transferring or making certain debts the sole responsibility of a particular spouse after a divorce, it will not likely stop creditors from attempting to collect debts incurred by one or both spouses before the divorce. Debts incurred in the course of marriage will also stay on your credit report for years after the divorce even if the marital settlement agreement states another spouse is now solely responsible for payment.
If you are planning to file for divorce or are in the middle of a divorce proceeding it may be a wise choice to at least examine your options under the Bankruptcy Code. A Bankruptcy may be able to provide a fresh financial start or the ability to adjust your debts before or after a divorce.
It is often a good choice to wait until your divorce is finalized before filing for Bankruptcy, as you will have a much clearer picture of you financial condition and personal debt obligations after the divorce is final. Alternately, if either you and your soon to be ex spouse are thinking about Bankruptcy, you may want to consider jointly filing for Bankruptcy before you file for divorce. This way you will be more likely to know what financial obligations will be discharged when you actually do file for divorce.
A joint Bankruptcy filing before divorce will probably save you at least some money, since you'll only pay for one bankruptcy filing as compared to two, and as such your divorce might be much less complicated.
This scenario is only possible if both you and your soon to be ex spouse are willing to work together before filing divorce. It may not be possible to work together with your soon to be former spouse. It is understandable that not all divorces are amicable situations. Texas is a community property state, which generally regards community property as all property that has been acquired during the marriage, other than a gift or inheritance.
This is the case even if one spouse earns all the money which acquired the property as all the property acquired is still considered to be community property. A Texas divorce court may however decree an unequal division of community property depending on the particular facts of a case. Most property acquired during a marriage, with exception of gifts or inheritances, is owned jointly by both spouses and is divided upon their divorce, annulment of the marriage, or death.
The community property system is usually justified by the idea that joint ownership recognizes the theoretically equal contributions of both spouses to the creation, maintenance, and operation of a family unit. Community property in Texas is usually defined as property, other than separate property, acquired by either spouse during a marriage.
Whether property is considered separate or community in nature is determined at the time the property is acquired. In the context of Bankruptcy and community property, spouses or soon to be ex-spouses do not have to file Bankruptcy together.