Bankruptcy Advice – Filing For Bankruptcy and Divorce

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Bankruptcy Advice – Filing For Bankruptcy and Divorce

Everybody passes through strenuous times in their life. Losing a job, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these experiences are so stressful is because financial problems are commonly accompanied with them. In most cases, financial troubles are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we sometimes see these two events happen simultaneously. While both actions are separate, the emotional nature of such decisions can create potential issues that cross paths and can lead to a drawn-out and distressing process for both parties.

If you and your partner have come to the decision that divorce and bankruptcy are the best options in moving on with your lives, there are a variety of options that you must consider. This article aims to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are a couple of factors 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 intend on dissolving the marriage– will the divorce be contested or uncontested? Or will certain issues be contested that will require lawsuits? Regularly, divorces are a very challenging process and there will be complications that appear without your prior consideration. This simply emphasises the importance of proper research and planning.

If you’re confident that your soon to be ex-spouse will not agree on how to divide your assets and debts, and litigation is more than likely, the first step you should take is to seek a knowledgeable divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy expert and divorce lawyers will need 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 topics that will emerge in both cases that can considerably affect the result of each outcome.

In some cases, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Normally, both you and your spouse will owe creditors together, in which case filing for joint bankruptcy may be an enticing option. If you have not filed for divorce at this point, then bankruptcy can greatly help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can usually remove substantial amounts of joint marital debt.

The most common complication 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 a solution. In addition, once a divorce is filed, it’s highly likely that both parties will not settle on matters 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 bear in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done any time before, during, or after a divorce.

While both bankruptcy and divorce are difficult and time-consuming processes, they’re also a chance to move on with your life and start anew. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is extremely 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 costly and time consuming. What is clear is that you should devote the time and money on experienced law firms relating to both your divorce and bankruptcy. For more information, or to talk to someone about your individual circumstances, contact Bankruptcy Experts Lismore on 1300 795 575 or visit http://www.bankruptcyexpertslismore.com.au

 

By | 2017-10-12T23:41:53+00:00 March 24th, 2017|article, bankruptcy, blog|0 Comments

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