Bankruptcy Advice – Filing For Bankruptcy and Divorce

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Bankruptcy Advice – Filing For Bankruptcy and Divorce

Everybody experiences challenging times in their life. Losing a job, severe illness, and unexpected pregnancies are just a handful of these. A leading reason why these experiences are so stressful is because financial problems are usually accompanied with them. In most cases, financial problems are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two events happen simultaneously. Although both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can create a lengthy 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 strives 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 number of variables to consider.

To answer this question, you should discuss your individual circumstances with a professional 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 lawsuits? Generally, divorces are a very complicated process and there will be complications that emerge without your prior consideration. This simply highlights the value of adequate research and preparation.

If you’re confident that your soon to be ex-spouse will not see eye to eye on how to share your assets and debts, and litigation is more than likely, the first step you should take is to find a capable divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy professional and divorce lawyers will have to communicate frequently to make sure they have all relevant information to give you the best case possible. Even though both events are separate, there are subjects that will emerge in both cases that can substantially affect the result of each outcome.

In some cases, filing for bankruptcy before filing for divorce is favourable. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Generally, both you and your spouse will owe creditors jointly, 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 greatly assist to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can usually eliminate substantial amounts of joint marital debt.

The most common issue here is that filing for joint bankruptcy indicates that you and your spouse will need to make joint decisions. If this is not possible, then joint bankruptcy will not be a solution. In addition, once a divorce is filed, it’s highly 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 refuses 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 difficult and time-consuming processes, they’re also an opportunity to move forward 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 critical. If you’re in a position where you and your spouse can agree and make joint decisions, then generally both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on experienced law firms relating to both your divorce and bankruptcy. For additional information, or to speak to someone about your individual circumstances, contact Bankruptcy Experts Wollongong on 1300 795 575 or visit http://www.bankruptcyexpertswollongong.com.au

 

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