Bankruptcy Advice – Filing For Bankruptcy and Divorce

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Bankruptcy Advice – Filing For Bankruptcy and Divorce

Everyone passes through strenuous times in their life. Losing a job, serious illness, and unplanned pregnancies are just a couple of these. A leading reason why these experiences are so traumatic is because financial complications are normally accompanied with them. In many cases, financial challenges 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 often see these two situations happen concurrently. Whilst both actions are separate, the emotional features of such decisions can create possible issues that cross paths and can lead to a time-consuming and distressing process for both parties.

If you and your partner have concluded that divorce and bankruptcy are the best options in moving forward with your lives, there are a couple 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 a number of issues to consider.

To answer this question, you should look at your individual circumstances with an experienced 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 a lawsuit? Regularly, divorces are a very intricate process and there will be issues that develop without your prior consideration. This merely accentuates the importance of sufficient research and planning.

If you’re confident that your soon to be ex-spouse will not agree on ways to share your assets and debts, and litigation is more than likely, the first step you should take is to find a qualified divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having competent legal support. Both your bankruptcy professional and divorce lawyers will want to correspond frequently to ensure they have all relevant information to give you the best case possible. While both events are separate, there are subjects that will emerge in both cases that can significantly affect the result of each outcome.

Sometimes, filing for bankruptcy before filing for divorce is beneficial. Both you and your spouse have the choice of filing a joint bankruptcy, along with individual bankruptcies. Usually, both you and your spouse will owe creditors collectively, 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 substantially help to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can usually remove significant amounts of joint marital debt.

The most common concern here is that filing for joint bankruptcy denotes that you and your spouse need to make joint decisions. If this is not possible, then joint bankruptcy will not be an option. Additionally, once a divorce is filed, it’s very likely that both parties will not settle 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 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 before, during, or following a divorce.

 

While both bankruptcy and divorce are stressful and lengthy processes, they’re also an opportunity to move forward with your life and start afresh. Understanding the intricacies of both actions is the key to successful outcomes, so an experienced legal support team is paramount. 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 spend the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For more information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Taree on 1300 795 575 or visit http://www.bankruptcyexpertstaree.com.au

By | 2018-07-04T00:10:46+00:00 March 24th, 2017|Bankruptcy, Liquidation|0 Comments

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