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Parker Law Blog

3 tips to help you find financial freedom during bankruptcy

There are many reasons why individuals turn to bankruptcy to address the debts plaguing them. You may be unable to work because of a sudden illness and cannot recover financially because of the lack of income and influx of bills. Or, maybe your credit card bills got out of hand and you can no longer afford to pay them. In cases that involve high debt, bankruptcy can help you to regain control.

Once you have decided that you are going to file, you need to develop a plan to live through the bankruptcy and fine-tune your plan for avoiding another filing in the future. While you do need to customize your plan to fit your life in Colorado, some tips can help just about anyone who needs to file for bankruptcy protection.

Important reminders about child support

Children should not have to pay the price for their parents' decisions to end their marriages. That is why in Colorado and other jurisdictions throughout the nation courts order parents to pay child support. Child support is money that custodial parents may use to provide their children with basic needs as well as to cover costs for their entertainment, activities, and other expenses.

Both of a child's parents are expected to contribute to their child's financial well-being. If a child is under the sole physical control of one parent, then the non-custodial parent may be required to pay monthly support for the child's care. Though child support is a common topic that individuals must address when they choose to get divorced, there are several facts about it that some readers may forget about.

What is the significance of legal custody?

Children are unique beings that have different needs from their parents. When two parents go through a divorce the careful balance that they have created to provide stability for their children may be upset by the turmoil in their relationship. When Colorado families are pulled apart due to divorce, children can be left with uncertainty in their lives.

Because of this, parents often prioritize their child custody plans. Most often custody is thought of as where a child will live after their parents' marriage end. But custody is much more than just that. While physical custody relates to a child's physical needs and residence, legal custody concerns who makes child-rearing decisions that will impact the child's life.

Property that may be subject to division during a divorce

Martial property is subject to division during a Colorado divorce. While the separate property that individuals maintain will remain their individual assets once their marriages are over, martial property must be split amongst the spouses with each spouse taking their share of it into their new independent life. Many marital assets are easy to identify, such as homes that were purchased during the course of a marriage. Other assets may be more easily forgotten over time and left out of marital property assessments.

Martial property can include real property, such as marital homes and land, but it can also include vacation homes, commercial buildings, tracts of land, and investment properties. Martial property can include financial tools and assets like retirement accounts and cash, too. This is because many types of financial devices can be owned by both of the parties to a marriage.

Bankruptcy can help debtors hold onto their homes

Debts are burdensome and uncomfortable. When Parker residents receive their monthly credit card bills and see that their balances have ballooned due to interest fees or that an unexpected medical procedure is thousands of dollars more than they anticipated, they may worry about how they will pay their financial obligations. Unpaid debts have a way of festering and growing and not going away until debtors take action.

Taking action with regard to unpaid debts is important, particularly when a person's financial woes affects their ability to pay their mortgage. When mortgage payments have been missed for several months a homeowner's residence may become subject to foreclosure. A family's home may be lost if its members are not able to stay current on its mortgage payments.

When is sole custody ordered in family law cases?

Every child custody and family law case is based on different facts and will involve children who have different needs. The best interests of one Colorado child may vary greatly from those of another, and for that reason individual custody cases receive their own consideration and review. The information contained in this post is informational in nature and should not be used by readers as legal advice.

Child custody involves reflections on where a child will live as well as considerations related to who may make decisions about their care. These two aspects of child custody are divided into physical custody and legal custody. While it is often the case that two parents will share legal custody of their kids so that they can both have a say in how their children are raised, it is not unusual for only one parent to be granted physical custody.

Who gets to keep your vacation home in a Colorado divorce?

The Colorado landscape is dotted with mountains and lakes, both of which lend themselves well to the establishment of a vacation home. Many families in Colorado have a vacation home where they can enjoy the summer or the winter holidays together. These properties can often be a major source of contention in Colorado divorces.

Much like with the main home for the family, the vacation home or second home can also be an asset that has significant emotional ties for both spouses. Additionally, like any real estate, a vacation home likely represents substantial value.

When does spousal maintenance end?

Getting a divorce can be difficult for a Colorado resident, especially if they have concerns about how they will financially support themselves once their marriage is over. In some divorce cases, financially disadvantaged individuals may secure alimony or spousal maintenance from their exes to help them transition into their new single lives. Alimony can end based upon the terms of an agreement made amongst the parties or based on how a divorce court structures the parties' alimony order.

For example, a judge may order that one party to divorce pay the other a lump sum alimony award. In such a case the paying spouse's obligation to their ex would cease once that singe payment was made. However, if the parties' judge orders ongoing maintenance, then the end of the alimony obligation may not be as clear.

Using bankruptcy to stop home foreclosure

Facing home foreclosure can be scary for a Colorado family. The prospect of losing one's home can weigh heavily on a person who faces uncertainty regarding where to move their spouse and children. When foreclosure becomes a possibility in their life, they may explore their legal options for protecting their residence and the equity that they have built in it.

One option that they may look into to stop home foreclosure is bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy may serve the purpose of halting the foreclosure process in its tracks. That is because in personal bankruptcy an automatic stay is put into place to cease all creditors' actions from collecting what they believe is due to them.

Medical bills can ruin financial lives

It can take years for a Parker resident to pay off their student loans or save enough money to buy a house. They may hold off on remodeling their residence or buying a new car if they do not feel as though they are financially ready to make such a big expenditure. Many of the big costs that individuals take on throughout their lives are expected and can be planned for, but medical bills that result from emergencies and accidents can be the exception to this general rule.

A massive medical bill can hit at any time due to an unexpected diagnosis, a violent car accident, or another form of incident that subjects a person's body to illness or injury. While some people have health insurance that may help them reduce the amounts that they owe for the services they received, insurance is often not enough to keep a person from experiencing serious financial strain after being billed for a medical procedure or expense.

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