Divorce is a stressful process that can affect your life more than you ever imagined. If bankruptcy is piled on top of that, things can quickly become overwhelming. But as a divorce and bankruptcy lawyer TN trusts, I know bankruptcy and divorce often go hand-in-hand. In fact, divorce is one of the leading causes of bankruptcy filing in America.
If you and your soon-to-be ex-spouse find yourselves facing both divorce and bankruptcy, don’t despair. You can get through it with the right help. But before filing for either, here are some important facts you need to know:
Which to File First: Bankruptcy or Divorce
The answer to this question is different depending on your unique set of circumstances. Whether you should file for bankruptcy before or after a divorce depends on how much property and debt you have, and what type of bankruptcy you wish to file: a Chapter 7 or Chapter 13. There are different eligibility requirements and pros and cons to both types.
Filing for bankruptcy before divorce might make your divorce proceedings simpler because you will no longer have joint debt. However, it’s always best to speak with an experienced bankruptcy lawyer before you decide which case to file first.
Filing Bankruptcy Together or Individually
Divorcing couples often file together because it can be more efficient. For example, filing bankruptcy together before your divorce means your joint debt can most likely be discharged. This can reduce the issues to be decided in divorce court. Many couples find that filing together greatly streamlines the divorce process.
However, there are cases in which an individual filing makes more sense. For example, if one spouse needs bankruptcy protection immediately, or if each spouse finds it easier to qualify for bankruptcy after the divorce due to a mutual drop in income.
How Property Division Works
Your property cannot be divided in divorce court until bankruptcy is complete. That is, unless the divorce court is explicitly instructed by the bankruptcy court to proceed. Therefore, filing for bankruptcy during a divorce might delay the divorce settlement.
Child Support Payments
Bankruptcy cannot discharge child support, family support, or alimony. If you file for bankruptcy during your divorce, your bankruptcy does not prevent the divorce court from assigning you child support obligations.
Talk to a Divorce and Bankruptcy Lawyer TN Trusts Today for FREE
Divorce and bankruptcy can both cause a lot of emotions and stress. This is why we’re here to make your bankruptcy filing as simple and stress-free as possible. Give us a call at 901-327-2100 or contact us online to hear how we can help. The consultation is absolutely FREE.
We will answer any questions you have, talk through your specific situation, and come up with a plan that works for you. Give us a call today.