September 2014 Newsletter
apple-sm.jpg Greetings!

I cannot believe summer is over already.  The kids have settled in at school and are doing well.  We are looking forward to our yearly family visit to the apple orchard this month.

Take Care,
Robert
 
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How Does Personal Bankruptcy Affect Co-signers? 

 

Co-signers are there as vouchers for people who cannot obtain credit on their own. When the main person cannot pay their bills creditors will go after the co-signer. A co-signer goes in with the intention that it won't come to that point. So if bankruptcy is filed on behalf of the main person, is the co-signer in the clear too?

Co-signers took on the responsibility to help someone gain something (car, loan, house, etc) when that person couldn't do it themselves due to their bad credit. Co-signers hope that helping someone out doesn't turn into something they regret. Unfortunately it does come to that point; Personal Bankruptcy affects the person filing and everyone around them. Filing for bankruptcy gets the person filing in the clear but co-signers are stuck with creditors harassing them.

 

How bankruptcy affects co-signers depends on the type of bankruptcy filed. If the main person filed for chapter 7 the co-signer will have to pay all discharged debt. Since chapter 13 is about creating a court-approved repayment plan the co-signer is free from obligation as long as the main person pays their monthly payment. The co-debtor stay is activated for co-signers as protection. If they fall back on payment co-signers will have to pick up the slack. Co-signers for businesses that file for bankruptcy don't have protection at all from it.

It sounds like chapter 13 is better for co-signers than chapter 7. The person filing, however, is going to file in the best interests of his or her finances, and the best interests may not be chapter 13. Co-signers have to look out for themselves too because their credit is at stake it the bill isn't paid.

 

Co-signers come in the form of strangers, friends, co-workers and family. A bond this close can easily be ruined because of debt, and filing for bankruptcy makes the situation more difficult. Lenders and creditors don't care who pays the debt because they have a choice. As long as it is paid it doesn't matter to them either way. Talk to the Law Offices of Robert Kovacs about this delicate situation. Contact us for more information on co-signers and bankruptcy.


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Divorce Lawyer

 

Most people are clueless when they are faced with divorce, and it is not hard to make costly mistakes when you don't have the guidance of an experienced Divorce Lawyer. Secretly you may hope that your marriage will magically fix itself, and you won't need an attorney, but reality soon sets in, and you know it is time to talk to a divorce attorney about your situation. You have too much at stake not to, and you need someone in your corner at such a distressing time. Emotions can run high at a time like this, and not being able to think clearly and rationally are to be expected, even if you are usually level-headed during stressful times. You want to do things the right way, because any mistakes made now could end up being costly ones. After all, everything that happens during the divorce process will have a direct effect on your future. The best thing for you to do right now is seek the advice of an experienced, local divorce lawyer to help you avoid some serious pitfalls, and help you avoid these 5 costly mistakes.

 

1. When you begin to look around for an attorney, don't go to Uncle Silas who happens to be a criminal attorney, or to your company's in-house attorney seeking advice. You need an attorney who specializes in divorce ,which would be a family law attorney. Family Law covers all legal proceedings involving the family, and a divorce lawyer is a specialist in that practice area. When your future is at stake, and that of your children, doesn't it make good sense to go to a specialist?

 

2. When you meet with an attorney, don't hold back anything. Lay all of your cards on the table. Express your honest feelings towards your spouse if you are having difficulty getting control of your emotions. A divorce lawyer understands how traumatic and stressful a time like this can be, and will know how to help you. Being totally honest now will extinguish any possibility of unwanted surprises later on.

 

3. Don't be mean-spirited towards your spouse. This will only cause you more problems, and it could land you in jail. Divorces where the couple can be amicable long enough to hash out an agreement they both can live with ,often takes less time, and wont be as expensive. When the couple are at odds concerning custody, property, and their finances, a judge must make those decisions for them, will take much longer,and you might not like the outcome. The most time consuming and expensive divorces are the ones where the two parties involved cannot agree to the terms of the divorce.

 

4. Don't forget about your children. Even the best parents can become so overwhelmed that they forget about their children's feelings, and concerns. A divorce disrupts everyone's life, so try to keep your child's daily routine as close to normal as possible. Discuss the divorce with your child in a way that is age appropriate. Younger children have more difficulty with a break-up because their maturity level can't comprehend the reasoning behind a divorce, and many times the child will feel responsible for the other parent leaving. When children feel they are the cause of the break-up, they will remain silent of their feelings. They don't want to do anything that might upset the remaining parent and cause them to leave too, so you will have to initiate the conversation. Let them know they are not at fault.

 

5. Don't cancel any insurance policies, or stop payment on your credit cards, or your spouse's car. Continue paying all of the bills as you normally would until your attorney tells you otherwise. Don't change anything, or make any decisions where your spouse is involved without consulting with your attorney first.

 

When you are deciding on the right attorney to handle your divorce, contact us for a consultation at the Kovacs Law Office. Our family law team would welcome the opportunity to discuss your case with you. We are local, experienced, and well respected members of the Worcester community, and we are very good at what we do. Allow us to lessen your worries and alleviate your fears so we can help you make the choices and decisions that are right for you.



 

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