Divorce can have a significant impact on both couples, as many aspects of each other’s lives change drastically. Additionally, there is a whole host of additional financial burdens. It is not uncommon for one or both spouses to file bankruptcy to find relief from debt.
Are you contemplating bankruptcy due to your divorce and wondering what the effects might be? Careful planning ahead of time can help make the entire process much more manageable. Consider the most important factors: the assets you have, the properties you own, how much debt you have, and also what type of bankruptcy is most applicable.
Here are some important items you may want to address with your spouse:
- Is Chapter 7 or Chapter 13 right for me?
- Which of the types of bankruptcy do we qualify for?
- How do we want property divided?
- Whose debt belongs to whom?
Which First—Bankruptcy or Divorce?
Which should come first, the bankruptcy or the divorce? If you file for bankruptcy first, any debts that are shared between you and your spouse can be cleared out jointly. If you are the primary breadwinner, this can help your chances if you are choosing Chapter 7 bankruptcy. Filing before your divorce can also help cut out the costs of expensive mortgages, auto loans, and other debt that neither spouse wants to be stuck with.
On the other hand, filing for divorce first would make more sense if you or your spouse were high-earning and would not qualify under the guidelines of Chapter 7. Another advantage is that you can have a better idea of what your child support or alimony payments will look like before filing for bankruptcy. This may play a large role in the entire bankruptcy procedure.
Thousands of Bankruptcy Cases Handled
The Carson Law Group has a reputation for supportive legal counsel. Our lead attorney, Janet L. Carson, is widely recognized for obtaining practical, efficient resolutions for individuals and families who are facing divorce and bankruptcy.
If you have any questions about the processes, are seeking debt relief, or would further like legal guidance on matters relating to divorce and the issues involved, do not hesitate to ask our lawyer about your situation. Janet L. Carson has handled thousands of bankruptcy and family law cases over the years.
We offer free case consultations. Call (760) 263-6915">(760) 263-6915 to request yours!