Bankruptcy Advice – Filing For Bankruptcy and Divorce
Everyone goes through difficult times in their life. Loss of employment, severe illness, and unplanned pregnancies are just a handful of these. A leading reason why these experiences are so traumatic is because financial difficulties are generally accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two situations happen simultaneously. While both actions are separate, the emotional features of such decisions can create possible issues that cross paths and can create a time-consuming 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 several options that you must take into consideration. 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 various factors to consider.
To answer this question, you should go over your specific circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require a lawsuit? Typically, divorces are a very challenging process and there will be issues that arise without your prior consideration. This merely accentuates the importance of sufficient research and planning.
If you’re confident that your soon to be ex-spouse will not agree on the best ways to divide your assets and debts, and litigation is more than likely, the first step you should take is to find a competent divorce lawyer. The key to a successful outcome for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy specialist and divorce lawyers will want to converse regularly to make sure they have all relevant information to give you the best case possible. Whilst both events are separate, there are matters that will emerge in both cases that can significantly affect the result of each outcome.
In some cases, filing for bankruptcy prior to filing for divorce is advantageous. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Generally, both you and your spouse will owe creditors jointly, in which case filing for joint bankruptcy may be an appealing option. If you have not filed for divorce at this point, then bankruptcy can substantially assist to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can often eliminate sizable amounts of joint marital debt.
The most prevalent challenge here is that filing for joint bankruptcy implies that you and your spouse will need to make joint decisions. If this is not practical, then joint bankruptcy will not be a possibility. Furthermore, once a divorce is filed, it’s very 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 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 lengthy processes, they’re also a chance to move on with your life and start over again. Understanding the intricacies of both actions is the key to successful outcomes, so an experienced legal support team is paramount. 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 spend the time and money on proficient law firms relating to both your divorce and bankruptcy. To find out more, or to speak to someone about your individual circumstances, contact Bankruptcy Experts Tablelands on 1300 795 575 or visit http://www.bankruptcyexpertstablelands.com.au