Two Income Household to One Income Household

Everyone at some point in time will have periods of financial difficulty. As Brandon Sellers says, it has happened to him on many different occasions: during COVID, during his divorce, and when starting The Sellers Law Firm. Starting a new business was tough! At times he thought he would give up because of the lack of income, and just take a job with another law firm; however, he persevered. COVID has had a severe impact on his firm, like it has on many other people and businesses, but we are still here; we are fighting for people every day because this is what we love to do! We want to help!

Often, tough financial times are triggered by the loss of a spouse through death or divorce. Since so many of today’s families’ financial situations are dependent upon a two-income situation, and the loss of one of those incomes can be particularly devastating. Since bankruptcy is intended to allow a person to have a fresh start, financially it can often be used to start a new life as a single income family. However, filing bankruptcy for a fresh start requires a deep knowledge and understanding of bankruptcy laws, rules, and processes. Your Montgomery, Selma, and Central Alabama bankruptcy attorneys at The Sellers Law Firm will be able to assist you as you consider or file for bankruptcy.

Not only does the loss of a spouse through death or divorce mean a drop in income, but a person often has emotional costs as well. In the situation of a death, there are burial costs and expenses for transfer of assets, as well as emotional costs that could cut into your ability to work. Like the death of a spouse, the divorce from a spouse can be expensive as well. Not only would some have the expense of setting up a new home, but if you were to keep the martial home, then you would be responsible for the expense for that home without the income from your former spouse. Also, divorce can be expense with the court costs, attorney fees, child support, and even alimony. On those last two expenses, it is important to note that child support and alimony cannot be forgiven or discharged in bankruptcy; however, in the case of child support, you may be able to restructure any back payments owed through a Chapter 13 repayment plan of three to five years.

While we are on the topic of divorce associated with a possible bankruptcy, here are some suggestions that might be considered. Prior to the divorce, having a discussion with your spouse about financial situations could save you both money. If both of you will need to file, then you can file jointly as long as you are still married, and then you will not have to pay for two attorneys and two filing fees. You may consider a Chapter 13, where you pay some of your debt through monthly payments, or a Chapter 7 where you liquidate your debt. You need to consider whether it would be best to file jointly or file separately. These are all questions that your Montgomery, Selma and Central Alabama bankruptcy attorneys at The Sellers Law Firm will be able to assist you.

If you have now decided that you need some guidance, then call or text us at 334-LAWYERS (529-9377). Our phone lines are answered 24 hours a day, and we can usually meet with you within 24 hours! All consultations are always free! You may also email us at bsellers@sellerslawfirm.com.

No matter which kind of bankruptcy you file, there are some things to keep in mind. First and foremost, the filing of a bankruptcy initiates the automatic stay (please read more about the automatic stay on our website). The automatic stay prevents any creditor from taking any action to collect a debt without permission from the bankruptcy court to do so. This means they can’t continue with a lawsuit, foreclosure, or attempt a repossession after the filing date. Also, they can’t call you, text you, continue with a garnishment, or bother you in anyway. The only contact the creditor can have about your debts is your attorney at the Sellers Law Firm! Often stopping the harassment and a garnishment can be enough to bring some peace of mind or control over your finances to allow you to continue on, despite the loss of a partner from divorce or death.

Of course, the purpose of most bankruptcies is to obtain a discharge of your debts and this ability to have a discharge can sometimes be in question. As previously mentioned, child support and alimony may not be discharged. A discharged debt is one that is ordered by the Court to be uncollectable forever. The creditor to whom you owe a debt can never come back and try to squeeze that money from you. However, the one major issue with obtaining a discharge in some cases is that once the discharge is given, then there is a period of time in which you cannot be given another discharge. Generally speaking, if you get a discharge under Chapter 7 then you cannot get another discharge under another Chapter 7 for 8 years. Since a Chapter 13 includes a period of 3 to 5 years during which you make a payment to the Trustee, who then pays some of your creditors, you may file another Chapter 13 or Chapter 7 in a quicker time, depending on your own unique case circumstances.

Regardless if you find yourself in financial difficulty from the loss of a spouse from death or divorce, consulting with your Montgomery, Selma, and Central Alabama bankruptcy attorneys at The Sellers Law Firm will likely provide a great benefit to you. Since 1995, we have handled well over 10,000 cases! We know how to handle Chapter 13 and Chapter 7 cases, and we know how to fight your creditors so that we can find and get the best solution for your finances.

All consultations are free, and we can usually meet with you within 24 hours of contacting us. You may call or text us at 334-LAWYERS (529-9377). You may also email us at bsellers@sellerslawfirm.com. You may also use the Contact Form on this website to reach us. It’s time to take control of your creditors before they take control of you! Make the call that could change your life right now!