Divorce and bankruptcy can both cause a lot of stress. Imagine experiencing both at the same time. While it can be quite overwhelming, you can get through it with the right help. If you hire legal assistance, you can receive proper guidance.
Deciding Which Bankruptcy Type
The first thing you have to do is decide on whether you want to file for Chapter 7 or Chapter 13 bankruptcy. There are pros and cons to both types of bankruptcy.
- Chapter 7. With Chapter 7, you will be better off filing before your divorce. This bankruptcy can be over within a few months and rid you of all your debts before you get a divorce.
- Chapter 13. If you choose to file for Chapter 13, it may be best to wait until after your divorce. This bankruptcy can last anywhere from three to five years. If you wish to get a divorce within that time frame, you will both have to file for bankruptcy separately once the divorce is finalized.
It’s also a good idea to consider your family income when deciding on whether you should file for divorce or bankruptcy first. If you and your spouse file for bankruptcy together, you can save money on legal fees. However, keep in mind that your total family income determines the type of bankruptcy you can file. If your family income is too high to file Chapter 7 bankruptcy, it may be a better option to file after the divorce is finalized.
If you make the decision to file for bankruptcy before you divorce, you should talk to an attorney about how your assets can stay protected. In some jurisdictions, filing for joint bankruptcy provides protection in the way of double exemptions.
Your Current Status
Your current relationship with your spouse can also be a determining factor on when you should file for bankruptcy. If you and your spouse are getting along, it may be beneficial to file for bankruptcy before you divorce. However, if you try to file for bankruptcy with a spouse that you’re not on good terms with, it can backfire. It’s important for you to be able to trust your spouse to come to court and provide all the necessary financial information and documentation.
Before you decide on when to file for bankruptcy, it may be in your best interest to consult with experienced divorce attorneys Phoenix AZ locals trust.
Thanks to our friends and contributors for Hildebrand Law for their insight into Divorce compensation cases.