Live chat- online now

We are here to assist you. Chat with us now.

Chat Banner

Can We Help You?

Menu
Squarebtn

contact us today

516-561-6645 718-350-2802 631-319-8262

free consultation

Getting Divorced During an Economic Downturn

divorce-150x1502The financial crisis in the United States is causing tension within families. Financial problems can be the cause of a divorce. In most marriages the family home is the largest asset. The decline in home values over the past three or four years has resulted in many homes being worth less than the mortgages on them.

Postponing Divorce

Recent studies have shown that nearly a third of all couples who considered divorce have postponed their divorce plans due to financial problems.

Divorce and Real Estate Issues

What do you do with the house in the divorce? Who stays in the house? Who is responsible for paying the bills on the house? These are significant issues that must be dealt with.

Living Together Until Financial Problems Can Be Dealt With

One choice for couples who don’t get along is to continue living together, but not as man and wife. These couples live together with the hope that their financial situation will improve and they will be able to sell their home and get their equity out of it. However, there is no sign the real estate market is improving throughout the majority of the United States. Furthermore, there is always a question as to whether living with someone you don’t get along with creates a negative environment for the children or will result in domestic violence.

Are the Mortgage Payments Behind?

If the mortgage payments are behind, the unhappy couple will eventually be receiving a foreclosure notice. Is it better to sell the house now or wait until it’s sold in foreclosure?

Modern Divorce

Divorce can be a contentious issue or it can be negotiated. The best solution for couples that don’t get along is for them to sit down with attorneys and negotiate in a mature, amicable manner, in either a divorce settlement or separation agreement. This will help avoid the acrimony and high cost of litigation.

New York and Long Island Divorce Lawyer

The Law Offices of Schlissel DeCorpo have been handling divorces in the Metropolitan New York area for over 33 years. We litigate all aspects of divorce related proceedings in the Supreme Court and Family Court. These proceedings involve divorce grounds, no fault divorce, child custody, mothers’ rights, fathers’ rights, child support, downward modification of child support, spousal maintenance (alimony)and domestic violence issues. In addition, we negotiate separation agreements, prenuptial agreementsand post-nuptial agreements for our clients. We litigate equitable distribution issues involving doctor, dentist and lawyer licenses. Call us for a free consultation.

Bankruptcy, Foreclosure and Divorce

bankrupt1-150x150

If one of the parties to a divorce action files for divorce, can he or she later file bankruptcy during the course of the divorce? The answer to this question is yes. Now let’s change the circumstances a bit. A husband and wife are involved in a divorce and during the course of the divorce, the husband is ordered by the court to make mortgage payments. Unfortunately, he falls behind in the mortgage payments. Is filing for bankruptcy the best route to stop the house from being foreclosed upon? The answer to this question in many instances is yes.

Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, the debtor sets up a plan to reorganize his or her debts. The plan is designed to bring the debtor up to date on his or her debts during a period of three to five years. The amount of the payment pursuant to the bankruptcy plan is based on the debtor’s income.

Debts are classified into various types within the plan. Unsecured creditors, such as debts related to credit cards, may be paid on a percentage of what is owed. Interest and penalty payments to these creditors are eliminated in the plan.

Mortgage Payments

Secured creditors, such as mortgage holders on real estate, are paid 100% of what they are owed under the plan. Banks holding mortgages who have refused to accept payments from the debtors are now forced to accept mortgage payments from the debtors under the bankruptcy plan.

Bankruptcy Protection for the Spouse

Under the bankruptcy law, child support and spousal maintenance payments are non dischargeable debt. This means a father obligated in the divorce to pay spousal maintenance and child support to his wife cannot eliminate these debts. Financial obligations of the payer’s spouse, under court orders of the divorce to make mortgage or home equity line payments, are considered to be part of the spousal maintenance and child support payments and these obligations are also non dischargeable in bankruptcy.

Chapter 13 bankruptcies can successfully be utilized to give a spouse who has obligations to make mortgage payments and pay spousal maintenance and/or child support an opportunity to come current in these obligations, save the home from being sold in foreclosure and comply with the state court order.

bankrupt1-150x146

Foreclosure Defense

The foreclosure defense lawyers at the Law Offices of Schlissel DeCorpo have been representing individuals with financial difficulties for more than three decades. Our office helps our clients prepare mortgage modification applications. We also deal with mortgage modification programs that fail to meet our clients’ needs. We defend foreclosure lawsuits for our clients. We attend foreclosure court conferences, litigate defective foreclosure lawsuits, predatory lending issues, defective mortgages and bad faith on behalf of financial institutions. We also assist our clients with other types of real estate litigation. Should bankruptcy be the route to dealing with our clients’ problems, we file both Chapter 7 and Chapter 13 bankruptcies on behalf of our clients. Feel free to call us for a free consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.

  • banner-changes
  • image5
  • image6
  • image7