Divorce can have a significant impact on both couples, as many aspects
of each other’s lives change drastically. Additionally, there is
a whole host of additional financial burdens. It is not uncommon for one
or both spouses to file
bankruptcy to find relief from debt.
Are you contemplating bankruptcy due to your divorce and wondering what
the effects might be? Careful planning ahead of time can help make the
entire process much more manageable. Consider the most important factors:
the assets you have, the properties you own, how much debt you have, and
also what type of bankruptcy is most applicable.
Here are some important items you may want to address with your spouse:
Which First—Bankruptcy or Divorce?
Which should come first, the bankruptcy or the divorce? If you file for
bankruptcy first, any debts that are shared between you and your spouse
can be cleared out jointly. If you are the primary breadwinner, this can
help your chances if you are choosing Chapter 7 bankruptcy. Filing before
your divorce can also help cut out the costs of expensive mortgages, auto
loans, and other debt that neither spouse wants to be stuck with.
On the other hand, filing for divorce first would make more sense if you
or your spouse were high-earning and would not qualify under the guidelines
of Chapter 7. Another advantage is that you can have a better idea of
what your child support or alimony payments will look like before filing
for bankruptcy. This may play a large role in the entire bankruptcy procedure.
Thousands of Bankruptcy Cases Handled
The Law Offices of Janet L. Mertes has a reputation for supportive legal
counsel. Our lead attorney, Janet L. Mertes, is widely recognized for
obtaining practical, efficient resolutions for individuals and families
who are facing divorce and bankruptcy.
If you have any questions about the processes, are seeking debt relief,
or would further like legal guidance on matters relating to divorce and
the issues involved, do not hesitate to ask our lawyer about your situation.
Janet L. Mertes has handled thousands of bankruptcy and family law cases
over the years.
free case consultations. Call (805) 291-4858 to request yours!