What You Should Know about Filing Bankruptcy and Divorce

Bankruptcy and Divorce

There are times in which money becomes a problem for married couples looking
to end their marriage, bankruptcy at some point may be something either
or both spouses are considering. Some may wonder if it is best to file
for one over the other while others may want to do them both at the same
time just to get it over with. There are factors that should be reviewed
when divorce and bankruptcy is both in the picture. Upon gaining clarity
on where each spouse stands it may make things easier when moving forward.
The following points can give some ideas on where to get started and issues
you should review.

  • Should bankruptcy or divorce be filed first? You should consider reviewing
    debt obligations between each spouse while understanding the significance
    of how bankruptcy can help if this is viable solution.

  • Think about assets and property and whether they can be divided and/or
    protected.

  • Each spouse can file their own bankruptcy; meaning, you don’t have
    to file a joint bankruptcy unless it is recommended by your attorney.
    In some cases this depends on who is liable for debt obligations included
    in the filing. When spouses share liability for debt they may need to
    file a joint petition in order to keep creditors from pursuing either party.

  • Consider possibilities of what may happen if one spouse decides to file
    for bankruptcy during divorce proceedings. In bankruptcy the automatic
    stay helps stop any form of legal collection for the person who filed
    a petition. In some cases this can affect a pending divorce and how it
    proceeds forward.

  • Consider what may happen if an ex-spouse decides to file bankruptcy after
    divorce has been finalized. This could affect the outcome of who is liable
    for debt obligations stated in the divorce decree. Certain debts such
    as alimony (spousal support) or child support may not qualify for discharge.

  • Due to potential areas of complexity with divorce and bankruptcy it is
    imperative to discuss your situation with a qualified divorce and/or bankruptcy attorney.

By | 2017-12-13T00:31:02+00:00 March 13th, 2014|Divorce and Bankruptcy|Comments Off on What You Should Know about Filing Bankruptcy and Divorce