Separation and Divorce Archives

Bankruptcy and death – two things most of us would rather not think about. Similar to our blog on Bankruptcy and Divorce. It’s not pretty, but it does happen. So, here’s what you need to know.

An estate planning lawyer can help with many things, like preparing your will, helping you make sure you communicate your end-of-life decisions. Most importantly, an estate planning lawyer can help make sure your assets transfer to the person(s) you wish to receive those items after your death.

But what happens if a death also involves bankruptcy?

Situation: You have declared bankruptcy, then get an inheritance

An inheritance after you’ve declared bankruptcy can seem to be a saving grace. But as with bankruptcy and divorce, timing is everything.

When you file for bankruptcy, a bankruptcy estate is created with a trustee to administer your assets. The inheritance can be added to those assets if you are in bankruptcy when your friend or relative passes away.

• Under Chapter 7 bankruptcy, any cash you inherit is added to your total assets to help pay down debt. Property like cars or houses, unless exempt, will be liquidated and added to your estate.

However, any inheritance received more than 180 days after filing will remain your property. Note that the court uses the date of death as the inheritance date, not the date the inheritance is received.

• Under Chapter 13 bankruptcy, the timing of the inheritance may not matter as much. The judge can choose to add your inheritance into your total income, increasing the amounts of your repayments.

Situation: You receive an inheritance from someone who has declared bankruptcy

When a person dies, they can pass their possessions along, but not necessarily their debt. But the inheritance may not end up coming to you if it is required to pay down the deceased’s debt.

• Under Chapter 7 bankruptcy, the deceased’s assets are already under the care of the trustee. Debts will be paid off until the bankruptcy is discharged. Any non-empty remaining property is then passed to the heirs.

An Estate Planning Lawyer or Michigan Bankruptcy Attorney Can Help

If you are in one of the situations described above, an estate planning lawyer or bankruptcy attorney can help you navigate the courts and your options.

We can work with you to discharge your debt or help ensure you receive the inheritance you deserve.

You can also consult with an estate planning lawyer to set up a living trust for your property. In some cases, property in a trust will not be considered part of the bankruptcy estate. Property isn’t just a home or car. It can include family heirlooms and even cash.

Although a trust sounds like something only a very wealthy person might consider, almost anyone can set up a trust to save their heirs from dealing with probate or the additional challenges of bankruptcy after death.

Need help? Contact Michigan Bankruptcy Attorney Stephanie Krane-Boehmer

Stephanie Krane-Boehmer is an expert Michigan bankruptcy attorney and estate planning, lawyer. Stephanie is happy to help you with all your estate planning questions. Although dealing with legal matters can be intimidating, she will put you at ease with her experience, expertise and down-to-earth approach.

We are located in Rochester Hills and serve Oakland, Macomb, Genesee, Lapeer Livingston, and Wayne Counties. We are here to support you through all aspects of your legal proceedings.

Keep in touch with Stephanie Krane-Boehmer on Facebook.

If you are parents who are not living together, are seeking separation, or going through a divorce, you may be looking for parenting plan examples.

A parenting plan outlines how parents who do not live together will make important decisions regarding the care of their children.

An Emotional Process

Dealing with custody issues can be emotionally draining, and parents want to protect their children during negotiations as much as possible. Your Michigan divorce attorney or family law attorney can provide advice on how to discuss the divorce with your children, and how to create a parenting plan that focuses on your children’s needs.

While custody seems to be simply a matter of where your children will live, there are many other factors that need to be agreed upon.

Although agreeing on a parenting plan arrangement might not come as easily as you would hope, the Law Office of Stephanie Krane-Boehmer can help you understand the child custody process and make it go a little more smoothly.

Parenting Plan Examples Online

A search for “parenting plan examples” can bring up many valuable results to help guide your decisions; however, a decision should never be made without an attorney. Make sure the results are relevant to the laws in your area and look carefully at the source. Good parenting plan examples should cover:

• • Communication
    What is the critical information you will need to communicate, how often and how (e.g., by email or face-to-face only). How do you communicate in an emergency? Are children allowed to communicate with you when they are with the other parent? Is a communication schedule needed?
  • Parenting time
    Where will the children live? If you’re splitting time, how will it work, and what are the transportation arrangements?  What about daycare / after school care and babysitting – are there any concerns, and who is responsible for the costs?
  • Extra-curricular activities
    How will you manage the child’s social life (e.g., sports, school outings, summer camp, friends’ birthdays) – who is responsible for managing the activities and arranging payments?
  • Visits with extended family
    Does your plan need to address visits with uncles/aunts/grandparents?
  • Vacations & Holidays
    How will you arrange holiday time, especially traditional family holidays like Thanksgiving?
  • Notifications for Travel / Moving
    Good parenting plan examples should include guidance on stipulations around travel, especially travel outside the country, or moving anywhere that will make it difficult for the other parent to visit.
  • Education
    How will you make arrangements around choices of schools to attend? Who will receive school reports and notifications? Who attends school teacher conferences, who is informed of any issues at school, and who is allowed to take the child out of school?
  • Medical
    Look for parenting plan examples that also detail medical needs, like who will be responsible for medical decisions/insurance and who will be responsible to make emergency medical decisions.

Completing your Parenting Plan

While you may find good parenting plan examples online to help guide your decisions, it is recommended to either have a qualified family law attorney or mediator review your plan, or draft your final plan before submitting it to the court.

Family law attorneys have a lot of experience working on parenting plans and will be able to think of things you may not have found in the parenting plan examples you used.

Once your parenting plan is complete, it can be presented to your case manager, custody manager, or judge. If both parents agree on the plan, the judge can be asked to make it a court order as part of the settlement to ensure the parenting plan is legally enforceable.

Parenting Plan: The Best Interests of the Child

The Michigan Family Court system makes final custody decisions based on the best interests of the child.

A good parenting plan – especially one agreed on by both parents – can help the judge make determinations on what is best to take care of the child’s emotional, medical and educational needs.

Looking for a divorce attorney in Rochester Hills?

If you’re looking to create a parenting plan, you need a divorce attorney that you can trust and feel comfortable with. Contact the law office of Stephanie Krane-Boehmer in Rochester Hills Michigan for help with navigating divorce matters. Stephanie will support you through mediation, litigation, parenting arrangements, child support, and division of property.

We are located in Rochester Hills and serve Oakland, Macomb, Genesee, Lapeer Livingston, and Wayne Counties.

Keep in touch with Stephanie Krane-Boehmer on Facebook.

Going through bankruptcy and divorce can be a complicated and emotional process. It’s not easy for anyone. Unfortunately, on top of the emotional considerations of ending a marriage, and the financial factors of dividing assets, at times a divorce can also land one or both spouses in the position of needing to file for bankruptcy.

In addition to having significant impacts on the outcome of a divorce, adding bankruptcy in Michigan on top of divorce adds complications and stress. Look for help where you can, and be sure to choose a lawyer with a solid understanding of both aspects of your case.

Different proceedings, different courts…what is the best way to handle your bankruptcy and divorce?

While divorce proceedings in Michigan are handled in the state court system, bankruptcy is always filed in the Federal United States Bankruptcy Court. Two different courts in two different systems. Two different systems that don’t always communicate easily with each other.

A key part of your lawyer’s work will be to ensure the right documents are filed in the right courts at the right time. And while that may seem simple, there are many factors to consider.

Timing of your bankruptcy and divorce is one important factor. Do you file before, during or after your divorce?

In short, it depends on your situation, and your lawyer can be a valuable resource to help you decide what is best for you.

When is the best time to file for bankruptcy when divorcing?

Filing for bankruptcy before your divorce can make the divorce proceedings go smoother. If it’s beneficial to both spouses, you can file for a joint bankruptcy and share the associated fees and costs to save yourselves time and money. There are also exemptions that you can use to your advantage when you file jointly.

Filing for bankruptcy during your divorce proceedings can complicate your divorce. Why? Because a filing in a federal court takes priority over a divorce in the state courts. As a result, filing for bankruptcy during a divorce triggers an “automatic stay” (or halt) to the divorce proceedings until the bankruptcy is settled. Your assets will be tied up as property can’t be transferred until the bankruptcy is settled.

Filing after a divorce can also have advantages as long as your Judgment of Divorce contains language that contemplates the filing of a bankruptcy.

What about Alimony, Support Payments and Debts?

Despite the difficulty of handling both legal issues at one time, life goes on. The court system has made allowances for some important aspects of divorce during process.

• Alimony & Support Payments – child support and alimony payments are considered priority debts, and cannot be discharged during a Chapter 7 bankruptcy. While some may want to use that to avoid these payments, a qualified Michigan family law attorney who also specializes in bankruptcy law will be aware of the rules, and take steps to stop these types of motions in their tracks.
• Joint Debt – a key part of a divorce is to divide assets…and debt. This means the type and amount of debt that is discharged through your bankruptcy proceedings will depend on the state of your divorce proceedings and the type of bankruptcy you choose.
• Assets and Property – the automatic stay when you file for bankruptcy freezes your assets and property. This means you won’t be able to touch your assets until your process is complete. For this reason, many choose a Chapter 7 (if eligible) so they can pay off debts and complete their divorce more quickly.

Sounds a little confusing? It can be. That’s why a qualified attorney familiar with both bankruptcy and divorce proceedings can be a huge support as you navigate the many decisions to be made when you are facing both bankruptcy and divorce.

Need some help? Contact the Law Office of Stephanie Krane-Boehmer for your separation, bankruptcy and divorce matters. We are located in Rochester Hills, and serve Oakland, Macomb, Genesee, Lapeer Livingston, and Wayne Counties. We are here to support you through all aspects of your filings, mediation, litigation, parenting arrangements and division of property.

Although dealing with legal matters can be intimidating, we will put you at ease with our experience, expertise and down-to-earth approach.  Our mission is to achieve the best results for you as you work through the many challenges of bankruptcy and divorce.

Keep in touch with Stephanie Krane-Boehmer on Facebook