Divorce can be one of the most trying times in your married life – or rather, soon-to-be-ended married life. It can be stressful and even emotional to deal with a divorce. For one thing, you need to consider spousal and child support, asset and property distribution, and all those paperwork. In this kind of challenging situation, you should contact the best divorce lawyers to help you regarding this matter.
Of divorce and bankruptcy
As mentioned, divorce can already be stressful enough. Add bankruptcy on your part, and you think you are already doomed. Filing for divorce and bankruptcy is possible. However, you need to know some of the most important facts about filing for divorce and bankruptcy. Divorce lawyers can also help you with this concern.
For one thing, timing is important when planning to file for both. Some couples file for bankruptcy first and then divorce. For other couples, it’s vice versa. Nonetheless, it depends on your current financial and marital situation. Hence, there is no one-size-fits-all when it comes to filing one before the other.
However, one thing can be sure: filing for bankruptcy can affect your divorce proceedings. It can also affect asset and liability distribution and even spousal and child support. Likewise, it can also create an impact on any debts you or your soon-to-be-ex-spouse have. Your income may be treated differently by the court depending on your marital status.
Should you file for divorce or bankruptcy first?
As mentioned, filing for both divorce and bankruptcy is possible and depends on the couple’s marital and financial situation. You can consult family lawyers regarding this concern. There are some things you need to consider when filing for bankruptcy and how it can affect your divorce proceedings.
On one hand, you can opt to file for bankruptcy first as long as you and your spouse still get along well. By both of you filing for bankruptcy, the court can help address all of your debts and can be considered as a joint bankruptcy case. Filing for joint bankruptcy can also increase the possibility of being qualified for Chapter 7 especially if only one of you is the household breadwinner.
On the other hand, filing for divorce first is a better option if your combined income exceeds the qualifications as per Chapter 7 bankruptcy policy. There are also cases wherein both spouses are considered qualified under the Chapter 7 bankruptcy policy even if they do not file it jointly. For more clarifications, you can consult top-rated divorce lawyers.
Other things you need to know about divorce and bankruptcy
Divorce may not be as simple as you think it is. It may drag on for months or even years depending on the complexity of the case. For example, you might have to hire child support lawyers or spousal support lawyers to help you with your divorce case.
Property distribution is another thing that may have to be settled to make the divorce final. Nonetheless, you need to consider your options first before deciding to file both for divorce and bankruptcy. Here are other things you need to consider as well.
First is that not all kinds of debt are covered in the Chapter 7 policy. There is such a thing as “non-dischargeable” debts that are not exempted in the process of bankruptcy. Hence, you are still obliged to pay certain debts back. Among those that fall under “non-dischargeable” debts include the following.
- Student loans
- Child support and their attorney’s fees
- Alimony/spousal support
- Any fines you need to pay to a government agency
There are also those that are considered dischargeable debts that should be complied with by any debtor. Otherwise, the court may not approve the request for debt discharge especially if:
- The one with debt is not able to provide the needed tax documents
- The debtor attempts to conceal a property to hide from creditors
- Financial records are purposefully destroyed
- There is a violation in a court order
- Does not complete the required credit counseling course
Hiring an attorney for divorce and bankruptcy
Filing for a divorce and bankruptcy can be hard. However, you can just think of it as a fresh start for you, your now ex-spouse, and your children. Knowing which one to file first is crucial depending on your financial and relationship with your soon-to-be-ex-spouse. Make sure to hire top-rated divorce lawyers to help you with the divorce process.