Bankruptcy Advice – Filing For Bankruptcy and Divorce

Everybody goes through difficult times in their life. Loss of employment, severe illness, and unexpected pregnancies are just a handful of these. A leading reason why these events are so traumatic is because financial difficulties are generally accompanied with them. In many cases, financial complications are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two events happen at the same time. While both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can result in a lengthy and distressing process for both parties.

If you and your companion have made up your mind that divorce and bankruptcy are the best options in moving on with your lives, there are a couple of options that you must keep in mind. This article strives to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are several variables to think about.

To answer this question, you should look at your individual circumstances with a qualified bankruptcy expert. You will need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require lawsuits? Generally, divorces are a very challenging process and there will be complications that appear without your prior consideration. This merely highlights the importance of adequate research and preparation.

If you’re confident that your soon to be ex-spouse will not agree on ways to divide your assets and debts, and litigation is more than likely, the first step you should take is to look for a qualified divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having competent legal support. Both your bankruptcy specialist and divorce lawyers will want to talk frequently to make sure that they have all relevant information to give you the best case possible. Although both events are separate, there are issues that will emerge in both cases that can substantially affect the result of each outcome.

Sometimes, filing for bankruptcy before filing for divorce is advantageous. Both you and your spouse have the option of filing a joint bankruptcy, in addition to individual bankruptcies. Normally, both you and your spouse will owe creditors jointly, in which case filing for joint bankruptcy may be an attractive option. If you have not filed for divorce at this point, then bankruptcy can dramatically help to eliminate joint debt, and aids in the division of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can often remove sizable amounts of joint marital debt.

The most frequent concern here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. Additionally, once a divorce is filed, it’s highly likely that both parties will not agree on issues relating to bankruptcy, further complicating the process. If your soon to be ex-spouse refuses to file for bankruptcy, then the process changes even further. Always keep in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done at any time prior to, during, or after a divorce.

While both bankruptcy and divorce are stressful and time-consuming processes, they’re also an opportunity to move on with your life and start afresh. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is very important. If you’re in a position where you and your spouse can agree and make joint decisions, then generally both actions will be less expensive and time consuming. What is clear is that you should invest the time and money on experienced law firms relating to both your divorce and bankruptcy. For additional information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Geelong on 1300 795 575 or visit http://www.bankruptcyexpertsgeelong.com.au

 

Recent Posts