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. Job loss, major illness, and unexpected pregnancies are just a few of these. A leading reason why these situations are so stressful is because financial complications are often accompanied with them. In most cases, financial problems are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we occasionally see these two events happen at the same time. Even though both actions are separate, the emotional nature of such arrangements 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 decided that divorce and bankruptcy are the best options in moving forward with your lives, there are a number of 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 a few factors to think about.

To answer this question, you should review your particular circumstances with an experienced bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will several issues be contested that will require a lawsuit? Generally, divorces are a very complex process and there will be matters that appear without your prior consideration. This simply emphasises the importance of adequate research and planning.

If you’re confident that your soon to be ex-spouse will not agree on how to distribute your assets and debts, and litigation is more than likely, the first step you should take is to find a skilled divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy professional and divorce lawyers will need to correspond regularly to make sure that they have all relevant information to give you the best case possible. Even though both events are separate, there are matters that will develop 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 option of filing a joint bankruptcy, in addition to individual bankruptcies. Ordinarily, both you and your spouse will owe creditors collectively, 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 substantially help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can usually remove significant amounts of joint marital debt.

The most frequent challenge here is that filing for joint bankruptcy indicates that you and your spouse need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. Additionally, once a divorce is filed, it’s very likely that both parties will not come to an understanding matters relating to bankruptcy, further complicating the process. If your soon to be ex-spouse declines to file for bankruptcy, then the process changes even further. Always remember that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done at any time prior to, during, or after a divorce.

While both bankruptcy and divorce are stressful and time-consuming processes, they’re also an opportunity 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 critical. If you’re in a position where you and your spouse can agree and make joint decisions, then usually both actions will be less costly and time consuming. What is clear is that you should devote the time and money on proficient law firms relating to both your divorce and bankruptcy. To find out more, or to talk with someone about your personal circumstances, contact Bankruptcy Experts Wangaratta on 1300 795 575 or visit http://www.bankruptcyexpertswangaratta.com.au

 

By | 2018-07-26T02:49:35+00:00 March 24th, 2017|Bankruptcy, Blog|0 Comments

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