Filing Bankruptcy During Divorce
There may be concerns surrounding bankruptcy and divorce that should be reviewed before progressing through either process. Bankruptcy may be considered in or during a divorce when certain situations arise such as a job loss or medical illness. One may consider bankruptcy if they feel they will be unable to pay debt assigned to them after the divorce is final.
Even if both spouses are working together with good intentions, bankruptcy may still be a consideration since finances will go under big changes with each spouse heading to separate households. Money strains often lead to marriages breaking up and the problem may not disappear as soon as you think after divorce. Bankruptcy may affect how certain debts are paid but if an account is joint, both spouses are likely to be responsible for the debt.
Bankruptcy is often filed after a divorce which may relieve a spouse from certain financial obligations outlined in the settlement. Alimony and child support can not be discharged through bankruptcy but changes related to the agreement in either situation may be requested.
Bankruptcy may help divorce situations especially if there is a high amount of debt between the couple. It may help in division of property and assets and even protect the other spouse from a future filing. It may become a challenge to negotiate property settlement depending on what debts are presented that need to be paid. A bankruptcy attorney may help in reviewing details of potential outcomes regarding settlement of property.