What Comes First? Divorce or Bankruptcy?
Divorce is hard. It can cause tremendous emotional and mental hardship. It is especially difficult if your finances are also strained. In fact, finances may be one of the driving factors of the divorce. You may even be in a financial situation that is untenable. If you have reached the end of the line in both your marriage and your money, then you may need to consider both divorce and bankruptcy.
If you know you are on the cusp of a divorce, you must also look after your material interests. To this end, you should speak to a Brighton Beach bankruptcy lawyer.
Divorce or Bankruptcy—which one should you undertake first? This is one of the most common questions to ask a bankruptcy lawyer. The straightforward answer is that bankruptcy should come first.
Here are the reasons why you should file for bankruptcy before filing for divorce:
1. Less paperwork and more financial clarity
It is possible for a couple to file for bankruptcy jointly. There is no advantage gained by filing individually. If you file while still legally married, you will be able to clear up the financial situation before you begin divorce proceedings. You will also reduce the amount of paperwork you have to deal with and the amount of contact you must make with your ex after the divorce.
2. Provides groundwork for a fresh start
If you and your spouse file a Chapter 7 bankruptcy, then you will be able to discharge all of your unsecured debt, including credit cards, consumer loans, and medical bills. Certain non-exempt assets will also be taken to pay off parts of your debt, which will work out for both of you as you are dissolving the marriage and breaking up your home. Filing for the bankruptcy before the divorce will work to your mutual advantage, as it will allow the two of you to re-build your financial lives apart from one another.
It is important to get the expert guidance and support of an experienced bankruptcy lawyer Brighton Beach residents can depend one as you go through these proceedings. Ursulova Law Offices can provide you with the legal counsel you need to navigate your way through the difficulties of bankruptcy. You will get the advice you require to begin the process of healing and renewal.