Bankruptcy Advice – Filing For Bankruptcy and Divorce
Everybody goes through strenuous times in their life. Loss of employment, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these events are so stressful is because financial problems are typically accompanied with them. In most cases, financial complications are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two events happen in unison. While both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can lead to a lengthy and distressing process for both parties.
If you and your spouse have decided that divorce and bankruptcy are the best options in moving on with your lives, there are a number 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? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are various issues to think about.
To answer this question, you should review your specific circumstances with a competent bankruptcy expert. You will need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will specific issues be contested that will require a lawsuit? Commonly, divorces are a very complicated process and there will be matters that emerge without your prior consideration. This merely emphasises the value of sufficient research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on ways 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 prosperous conclusion for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy specialist and divorce lawyers will have to converse regularly to ensure they have all relevant information to give you the best case possible. Even though both events are separate, there are topics that will develop in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Commonly, 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 significantly help to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can often remove sizable amounts of joint marital debt.
The most prevalent problem here is that filing for joint bankruptcy denotes that you and your spouse will need to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a possibility. Along with that, once a divorce is filed, it’s highly likely that both parties will not agree on 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 bear in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done any time prior to, during, or following 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 afresh. Understanding the complexities 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 commonly both actions will be less expensive and time consuming. What is clear is that you should invest the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. To find out more, or to speak to someone about your individual circumstances, contact Bankruptcy Experts Tamworth on 1300 795 575 or visit http://www.bankruptcyexpertstamworth.com.au