Life has a way of presenting us with a multitude of challenges simultaneously. Amongst the myriad of difficulties one can face, financial troubles like bankruptcy and marital issues such as divorce can often arise concurrently. In such situations, it becomes crucial to navigate the best course of action, especially in a state like Virginia where specific laws govern both bankruptcy and divorce. This begs the question: Can you get a divorce while going through bankruptcy in Virginia? To shed light on this complex matter, let’s delve into the details.
Understanding Bankruptcy in Virginia
To embark on this exploration, it’s essential to grasp the concept and workings of bankruptcy. Essentially, bankruptcy is a legal process designed to alleviate the burden of debts by either eliminating them or creating a repayment plan. In Virginia, there are two primary types of bankruptcy for individuals: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy: A Fresh Start
Chapter 7 bankruptcy, also known as liquidation bankruptcy, offers individuals a fresh start by wiping out their unsecured debts, such as credit card balances or medical bills. However, qualifying for Chapter 7 requires passing a means test that evaluates an individual’s income and expenses. Should one fail the means test, an alternative option to consider is Chapter 13 bankruptcy.
Chapter 13 Bankruptcy: Reviving Financial Stability
Chapter 13 bankruptcy, also referred to as reorganization bankruptcy, enables individuals to retain their assets while establishing a structured repayment plan. This type of bankruptcy is commonly pursued by individuals who may have fallen behind on mortgage or car payments, seeking to catch up without sacrificing their homes or vehicles.
An Insight into Divorce in Virginia
Now that we comprehend the intricacies of bankruptcy, let us turn our attention to the process of divorce in Virginia. Divorce is the legal separation of two previously married parties, and in Virginia, specific requirements must be met to obtain a divorce.
Residency Requirements: Establishing Ties to Virginia
To file for divorce in Virginia, at least one spouse must have been a resident of the state for a minimum of six months prior to initiating the divorce proceedings.
Grounds for Divorce: Reasons for Legal Separation
Virginia recognizes various grounds for divorce. These include adultery, felony conviction and confinement, cruelty resulting in reasonable fear of bodily harm, desertion, as well as voluntary separation without cohabitation for one year.
Divorcing Amidst Bankruptcy
Now, returning to our initial question, the answer is yes, you can get a divorce during bankruptcy in Virginia. However, it’s crucial to understand how the divorce process can impact ongoing bankruptcy proceedings.
Chapter 7 Bankruptcy: Traversing a Temporary Halt
If you find yourself amidst Chapter 7 bankruptcy proceedings while contemplating divorce, it is likely that your bankruptcy case will be temporarily paused until the divorce is finalized. This is because the division of assets and debts, intrinsic to the divorce process, could potentially affect your eligibility for Chapter 7 bankruptcy.
Chapter 13 Bankruptcy: Adjustments for Transition
For individuals going through Chapter 13 bankruptcy and considering divorce, it is necessary to adjust the repayment plan to accommodate changes in household income and expenses resulting from the divorce. Additionally, if you initiated the bankruptcy proceedings, you must inform the bankruptcy trustee and your creditors of your intention to divorce.
Final Considerations
Navigating divorce amidst bankruptcy complexities can indeed be a challenging process. In order to protect your best interests, it is highly advisable to seek guidance from experienced bankruptcy and divorce lawyers. With their assistance, you can skillfully navigate these intricate challenges and emerge victoriously.