Bankruptcy Advice – Filing For Bankruptcy and Divorce
Everybody experiences strenuous times in their life. Loss of employment, serious illness, and unplanned pregnancies are just a few of these. A leading reason why these experiences are so traumatic is because financial challenges are usually accompanied with them. In many cases, financial challenges are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two events happen concurrently. Even though both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can bring about a lengthy and distressing process for both parties.
If you and your companion have concluded that divorce and bankruptcy are the best options in moving forward with your lives, there are a number of options that you must consider. 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 couple of factors to think about.
To answer this question, you should go over your individual circumstances with an experienced bankruptcy expert. You’ll need to discuss how you anticipate 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 challenging process and there will be matters that appear without your prior consideration. This simply accentuates the importance of sufficient research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on how you can split your assets and debts, and litigation is more than likely, the first step you should take is to look for a competent divorce lawyer. The key to a successful outcome for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy specialist and divorce lawyers will need to correspond regularly to ensure they have all relevant information to give you the best case possible. Even though both events are separate, there are subjects that will develop in both cases that can substantially affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is advantageous. Both you and your spouse have the choice 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 attractive 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 separate joint assets and debts, it can often remove significant amounts of joint marital debt.
The most common complication here is that filing for joint bankruptcy implies that you and your spouse have to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. On top of that, 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 declines 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 before, during, or following a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also a chance 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 vital. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less costly and time consuming. What is clear is that you should devote the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For additional information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Bunbury on 1300 795 575 or visit http://www.bankruptcyexpertsbunbury.com.au