Filing For Bankruptcy and Divorce
Everybody goes through difficult times in their life. Losing a job, major illness, and unplanned pregnancies are just a handful of these. A leading reason why these experiences are so traumatic is because financial difficulties are generally 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 no surprise that we occasionally see these two incidents happen concurrently. While both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can create a drawn-out and distressing process for both parties.
If you and your companion have concluded that divorce and bankruptcy are the best options in moving on with your lives, there are a couple of options that you must keep in mind. This article aims to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are a couple of variables to think about.
To answer this question, you should take a look at your specific circumstances with a qualified bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will several issues be contested that will require litigation? Regularly, divorces are a very challenging process and there will be complications that arise without your prior consideration. This simply emphasises the value of effective research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how to split your assets and debts, and litigation is more than likely, the first step you should take is to look for a capable divorce lawyer. The key to a prosperous outcome for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy professional and divorce lawyers will want to talk regularly to make sure they have all relevant information to give you the best case possible. Although both events are separate, there are subjects that will develop in both cases that can drastically affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, along with individual bankruptcies. Normally, both you and your spouse will owe creditors together, in which case filing for joint bankruptcy may be an appealing option. If you have not filed for divorce at this point, then bankruptcy can significantly assist to eliminate joint debt, and aids in the division of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can often remove significant amounts of joint marital debt.
The most frequent challenge here is that filing for joint bankruptcy signifies that you and your spouse 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 very 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 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 prior to, during, or after a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also an opportunity to move on with your life and start over again. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is extremely important. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less expensive and time consuming. What is clear is that you should invest the time and money on competent law firms relating to both your divorce and bankruptcy. To find out more, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Melbourne on 1300 795 575 or visit http://www.bankruptcyexpertsmelbourne.com.au