Home ownership is part of the American Dream! It is something we all, to some extent, hope for. But oftentimes that dream becomes a nightmare because all of the proper steps are not taken, or not done correctly. That can turn your home into a money pit!

So in this episode of the podcast, I am going to talk about the steps you need to take here in New Jersey to minimize the chances of disaster. Every case is different (and you should have an attorney represent you) but these tips should give you a good idea of the pitfalls out there and how to avoid them.

Student loan debt continues to be a problem nationally, as the total owed exceeds $1 trillion. Although private loans are also a problem, the good news is that they make up only 15% of the total debt, and federal loans still dominate the landscape. The amount of debt per student (and in many cases the parents) has led to real problems with affordability of the monthly payments and defaulted loans.

These people have either given up, and let the loans default, thus facing wage garnishment and the loss of their federal tax refunds for the foreseeable future, or are hiding out in a deferment or forbearance, hoping that their financial future will somehow get better and allow them to make the payments. Still others file chapter 13 bankruptcies to prevent the entry of default by forcing the loans into a forbearance while making a small monthly payment for three to five years.

None of these are the optimal solution, especially as there are many offered by the U.S. Department of Education that allow you to get out of default (if you are) and get into a monthly payment that is affordable at your income level. So in this episode of the podcast I talk about what those solutions are and how they can help.

The filing of a bankruptcy by one spouse in a divorce is not always a cooperative process, part of an overall strategy. Sometimes the nonfiling spouse can become vindictive and seek to disrupt the bankruptcy filing. In this episode, Meryl and Steve talk about how important it is to keep the financial disclosures in your bankruptcy complete and accurate, so that your spouse can't point out mis-statements or omissions that can get you into trouble!

The automatic stay that bankruptcy provides can be extremely helpful in protecting you from creditors. It can stop a bank levy, a wage execution, or any other attempt to collect a debt. But exceptions in the bankruptcy code can allow your spouse or ex-spouse from taking many actions in family court without bankruptcy court permission. In this episode, Meryl and Steve discuss these exceptions and how to view the automatic stay realistically when it comes to your divorce.

In mosty cases, financial difficulties put strain on a marriage that leads to divorce. In those circumstances, bankruptcy can be helpful. But in this episode, Meryl and Steve talk about how financially secure couples can end up in bankruptcy because of how they handle their divorce! Learn how to avoid these mistakes!

Prenuptual Agreements are often used to negotiate many terms of a divorce in advance of the marriage itself. However, they cannot definitively allow you to preplan a bankruptcy discharge of your obligations under it. In this episode, Meryl and Steve talk about why these agreements cannot be worded in such a way as to create dischargeable obligations, and how you can still exit bankruptcy bound by their terms.

You may have agreed upon (or had a judge order) the equitable distribution of your marital assets in your New Jersey divorce. But the chapter 7 bankruptcy filing of one of you can put that distribution into jeopardy. In this episode, Meryl and Steve talk about how to approach this problem!

Even after a divorce is final, its effects can linger on.  One spouse or the other can be obligated to pay alimony and/or child support, along with maintaining life insurance to protect that stream of income.  But what can happen when one spouse files bankruptcy and reveals a higher income than that used to calculate the payments on that obligation?  How can that affect the payor or the payee?  This month, Meryl and Steve discuss the impact of a bankruptcy filing on an ongoing domestic support obligation like alimony or child support.

One common provision in New Jersey divorce decrees is for the educational expenses of the children.  In other words, who pays for what in connection with the kids going to college?  Filing bankruptcy at any point in this process, whether it is to deal with marital debt or debt incurred after the divorce can cause problems with student loans.  In this episode, Meryl and Steve talk about what complications are created and how to deal with them.

A bankruptcy can certainly help you in your divorce if you are weighed down with marital debt.  A chapter 13 can also help save a home from foreclosure or get a tax debt paid affordably.  But one thing that can really devastate a chapter 13 repayment plan is an unexpected divorce filing.  Meryl and Steve talk about what that can do to your plan and what options there might be to salvage your bankruptcy strategy.

Many credit card agreements for stores like Sears or Best Buy include a provision where you grant the bank a lien on anything you purchase with the card.  This can also include in-store financing with places like Raymour & Flanagan.  If you are dividing up marital property in a divorce, and that property was purchased under one of these agreements, it can make equitable distribution more involved.  These liens often come to light once a bankruptcy is filed, so careful, advanced planning is a must!  Meryl and Steve discuss what steps you have to take in your divorce and your bankruptcy to address this problem.

Bankruptcy can often be a useful tool in simplifying your divorce by getting rid of marital debt.  However, when a creditor has a lien against a marital asset that is subject to equitable distribution, this can still be a problem.  In this episode, Meryl and Steve talk about the pitfalls and how to avoid them.

A Chapter 13 bankruptcy repayment plan can help someone get current if they are behind on alimony and child support.  But what if you are the payee spouse?  How can you protect your rights?  Fortunately, there are several provisions in the bankruptcy code that protect the payee spouse.  Steve and Meryl talk about what a non-debtor spouse can do to insure that he or she is paid.

A useful and well thought out bankruptcy strategy can make your divorce much simpler and easier.  However, filing bankruptcy without proper thought to the issues can make matters worse.  Steve and Meryl talk about ways in which bankruptcy can cause problems for your divorce in this 4th episode of the podcast.

Many people getting divorced are in serious financial difficulty and considering a chapter 7 bankruptcy to get a fresh start. Sometimes that difficulty is the very reason for the divorce! But the question that is often raised is, which comes first? Do I get divorced and then file, or do I file and then get divorced? Well, as in many things in life, timing can be everything.  This month, Julie and Steve talk about how to make that decision.

Both bankruptcy and divorce involve full financial disclosure of all assets, liabilities, income, and expenses.  However, inconsistencies in these disclosures between a bankruptcy petition and a Case Information Statement in a divorce can lead to some serious problems.  In this episode, Julie and Steve discuss the pitfalls and how to avoid them.

One of the biggest issues to resolve in any divorce is marital debt.  Who pays it?  Who is responsible?  This episode will give you some great tips on how bankruptcy can help!