Often, couples use the words bankruptcy and divorce in the same sentence. One frequently follows the other because financial issues are usually the leading cause of marital dissolution. Often, a person will wait to see if their economic situation improves. This causes stress in the relationship and a breakdown of the family.
The Things You Should Do
If your status is married or separated, speak with a bankruptcy attorney before the courts make the divorce final. You and your spouse can choose to file for Chapter 7 bankruptcy before you get divorced, and this way, you can avoid paying separate fees.
Bankruptcy and Divorce : File Jointly
If bankruptcy and divorce are in your immediate future, filing for bankruptcy while you are still going through the divorce can help you and your spouse save on a divorce attorney’s fees. It also eliminates the need to delegate who pays which bills. The two of you can simply include all of the bills under the filing.
Would You Want To File Chapter 13?
Spouses who are not on good terms may want to avoid filing for Chapter 13. This type of filing requires long-term cooperation with the bankruptcy court, and this can last between three and five years. Many divorcing couples do not want to spend that length of time interacting with someone they no longer want to be around.
However, this type of filing often occurs when someone has a valid reason not to file for Chapter 7.
Individuals who are considering bankruptcy and divorce should schedule a consultation with an experienced bankruptcy attorney. The attorney will speak with you for free during the initial meeting. Eliminating the financial stress that is causing problems may save the relationship.
Douglas Jacobson Law Firm has represented thousands of debtors in bankruptcy court and the firm also specializes in non-bankruptcy solutions. Contact us for a free consultation.
When and Why You May Need To Hire a Bankruptcy Law Attorney