Bankruptcy Law Firm Memphis, TN
Getting a divorce or filing for bankruptcy are two extremely hard decisions to make. Both impact you financially and both can take an emotional toll. However, when you come to the point where you are considering getting a divorce as well as filing for bankruptcy, you may feel completely overwhelmed and unsure of whether you should file for bankruptcy before or after your divorce. Bankruptcy attorneys understand that this is a tough decision and want to make it as clear as possible for you. If you and your spouse are filing for divorce and want to know how bankruptcy will affect your divorce, speak an attorney today. They can walk you through the bankruptcy process and show you how it can be beneficial and detrimental in different situations to file for bankruptcy before or after your divorce.
Choosing the Type of Bankruptcy
One of the biggest factors to consider in this scenario is what type of bankruptcy you will be filing for. Once you know this, you can have a more informed decision when choosing when to file.
- Chapter 7. Chapter 7 can be a great option, especially if you and your spouse would like to file for bankruptcy jointly. When you pursue this option, you can file before your divorce, likely have the whole process completed in a few months, and have your debts discharged.
- Chapter 13. Filing for Chapter 13 bankruptcy is a significantly longer process and can even average up to 5 years. Thus, it may be a better idea to pursue your divorce first and file for bankruptcy later if you do not want to wait that long.
Other Factors to Consider in Your Divorce/ Bankruptcy Decision
Lawyers recommend considering all different factors when making the decision to file for bankruptcy before or after your divorce.
- Your Assets. When you work with us, we will go over a list of your assets to see if they can be protected when you file for joint bankruptcy. Going over assets like cars, business, and houses will give us a good idea of whether or not you can get any extra exemptions. We can look at the state’s laws to see if you get bonus exemptions for filing jointly.
- Your Income. Your household income will greatly impact which kind of bankruptcy you and your spouse should file for. For example, if you choose to file jointly, your household income may be so high that you are not qualified for Chapter 7 bankruptcy. If we determine that Chapter 7 bankruptcy is the best type to file for, we may wait to file until after your divorce.
- Your Spouse. Divorces don’t always end amicably. When it comes to filing for bankruptcy before your divorce, you want to be on as good of terms as possible since you will be relying on your spouse to provide the necessary documents for the bankruptcy process.
For more information on when you should file for bankruptcy during your divorce process, please reach out to the bankruptcy attorneys at a bankruptcy law firm in Memphis, TN from Darrell Castle & Associates, PLLC today.