Bankruptcy Advice – Filing For Bankruptcy and Divorce
Everyone goes through difficult times in their life. Loss of employment, severe illness, and unplanned pregnancies are just a handful of these. A leading reason why these incidents are so stressful is because financial problems are usually accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we occasionally see these two events happen simultaneously. While both actions are separate, the emotional nature of such arrangements can create potential issues that cross paths and can result in a time-consuming and distressing process for both parties.
If you and your spouse have made up your mind that divorce and bankruptcy are the best options in moving forward with your lives, there are a variety 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? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are a variety of variables to think about.
To answer this question, you should review your particular circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will some issues be contested that will require a lawsuit? Generally, divorces are a very intricate process and there will be issues that arise without your prior consideration. This simply accentuates the importance of effective research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on ways to split your assets and debts, and litigation is more than likely, the first step you should take is to look for a capable divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy expert and divorce lawyers will have to communicate regularly to ensure they have all relevant information to give you the best case possible. Whilst both events are separate, there are matters that will emerge in both cases that can substantially affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is favourable. Both you and your spouse have the option of filing a joint bankruptcy, along with individual bankruptcies. Usually, both you and your spouse will owe creditors together, 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 considerably assist to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not separate joint assets and debts, it can usually eliminate substantial amounts of joint marital debt.
The most prevalent dilemma here is that filing for joint bankruptcy implies that you and your spouse need to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a solution. On top of that, once a divorce is filed, it’s highly likely that both parties will not come to an understanding issues relating to bankruptcy, further complicating the process. If your soon to be ex-spouse refuses to file for bankruptcy, then the process changes even further. Always keep in mind 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 difficult and lengthy processes, they’re also a chance to move on with your life and start anew. Understanding the intricacies of both actions is the key to successful outcomes, so an experienced legal support team is very important. If you’re in a position where you and your spouse can agree and make joint decisions, then commonly both actions will be less costly and time consuming. What is clear is that you should invest the time and money on experienced law firms relating to both your divorce and bankruptcy. For additional information, or to talk with someone about your individual circumstances, contact Bankruptcy Experts Canberra on 1300 795 575 or visit http://www.bankruptcyexpertscanberra.com.au