How Does Bankruptcy Affect My Family?

How Does Bankruptcy Affect My Family?

Serious financial problems can take a toll on you—you may feel stressed or worried about your debts, taking care of your family, and feel unsure of whether you will ever feel financially stable again. Choosing to file for a Georgia bankruptcy can be a way to get out of this situation and take steps toward a financially secure future. However, if you are contemplating this decision, you may also be wondering how filing for bankruptcy can affect your family. Depending on your situation, bankruptcy can impact your family in various ways.

Your Spouse

Bankruptcy can have an impact on your spouse. When you file for bankruptcy, you can choose to file jointly (with your spouse) or separately (on your own). If you file with your spouse, your spouse will be included on all the paperwork, and property owned and debts accrued by both of you, will be considered. If you choose to file individually, separate property of your spouse will not be included in the bankruptcy. However, the bankruptcy will still consider jointly owned property, such as your cars or home.

If you plan to keep your home or cars that you own with your spouse, it is important to get the help of a skilled Georgia bankruptcy attorney who can guide you through the bankruptcy exemption process so you can protect these co-owned assets if possible. It is also important to remember that your bankruptcy will appear on your credit report which may have an impact on future attempts to co-sign loans or jointly acquire property for a while. If you are married, bankruptcy can still bring a lot of stability to your financial situation, but it is good to know how your spouse may be affected.

Your Kids

When it comes to your kids, bankruptcy can also have an impact. First, if you are responsible for paying child support due to a divorce situation, remember, that obligation continues even during bankruptcy. You must continue paying child support—even the bankruptcy stay does not toll this obligation. Second, bankruptcy can impact college and other savings accounts (such as a 529 account) that you have created for your children. While most of the time that money is protected, recent deposits may not be and could be included as an asset in the bankruptcy. As a result, you will want to make sure you have guidance from a bankruptcy attorney on how your children will be impacted by your choice to file for bankruptcy.

Find Out If Bankruptcy is Right for You and Your Family

Ultimately, bankruptcy will have an impact on your family, but in many cases that impact can be positive. As you get back on your feet financially, you can be in a better position to provide for and help your children. Though your spouse and children may be affected by a bankruptcy, the feelings of constant stress about debt can subside and you can move to a more peaceful financial future together. If you are wondering if bankruptcy is the best choice for you and your family, set up a free consultation with an experienced bankruptcy attorney at The Ballard Law Group. We are ready to answer your questions and help you and your family move toward a more secure future. Call us at (404) 800-9939 today!

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