Many who have turned to bankruptcy have had to do so as a result of their
divorce. But in some cases, if these people had gone through bankruptcy
first, then both that legal process and the
divorce would have been simpler. There are other situations, however, where it
is still best to start with the divorce. Read below to learn how the order
of these processes can significantly affect your financial future.
Reasons to File for Bankruptcy First
If you can complete bankruptcy proceedings before you file your divorce
papers, this usually will streamline your divorce, and for numerous reasons:
Bankruptcy fees are the same whether you file individually or jointly;
if you file for bankruptcy jointly with your spouse, you can
- If you take care of your debt before the divorce, property division becomes
that much simpler.
If you discharge debt before you split, you can also
save time in court if your spouse does not pay their debt, and then fails to reimburse
you when creditors come after you for the debt.
One of the most contentious and worrisome parts of the divorce is
dividing assets and debts. If you get rid of your debts before you enter the divorce, you can save
yourself a good deal in time-consuming stress and in legal fees.
When You May Want to Start with Divorce
For the most part, however, the above reasons apply only to Chapter 7 bankruptcy,
which only lasts a few months. You can quickly take care of this before
a divorce. If you need to file for
Chapter 13 bankruptcy, that is a process that lasts 3 to 5 years. In this case, it makes sense
to start with the divorce. There can still be reasons, however, even in
the Chapter 7 process to start with the divorce:
If you cannot get enough joint
exemptions to save all your property from bankruptcy, then you might be able to protect
more property by filing individually for bankruptcy after your assets
and debt have been divided in a divorce.
Then there is the
means test. To qualify for Chapter 7 bankruptcy, you have to establish that your
income is low enough. If you file jointly with your spouse and your joint
income disqualifies you, then you may want to complete the divorce so
that you can qualify under your new individual income.
Just be aware that if you enter bankruptcy during a divorce, the bankruptcy's
automatic stay means that you cannot finish the division of assets until
the bankruptcy is over.
Successfully Moving on to a Brighter Future
If you need to gain a fresh financial start at the same time that you face
a painful divorce, then your future is riding on two big legal processes.
You do not want to be without the help of a seasoned legal professional
in this time. It is crucial that you make the right choices so that you
can regain a strong, independent future as swiftly as possible. Every
divorcing couple's situation is unique, and your case will require
a very specific solution. If you have questions about how property division
proceeds, and how it could affect your future, be sure to
call the Meyers Law Group, P.C.
After you are aware of what your first step is going to be, you will further
need to be aware of your options when it comes to finding the right type
of divorce, whether that means going through
mediation, achieving an
uncontested divorce, or going to court for a
litigated divorce. Get the answers you need from an experienced divorce lawyer in Long Island
when you call today!