Divorce & Bankruptcy: Which Comes First?
Divorce is enough reason to consider filing for bankruptcy. If you have gone through a divorce, you may experience many financial problems, especially if you have to pay bills with a single income.
Regardless of the reason for your bankruptcy case after divorce, you should always discuss the topic with your trusted divorce lawyer. Also, talk to your trusted Gilbert bankruptcy law office to get the best debt-free solution.
Your divorce can impact your bankruptcy case, so be sure to read the following information before filing the bankruptcy petition.
Domestic Support Obligations In A Bankruptcy Case
Domestic support obligations are not eligible for a bankruptcy discharge or debt forgiveness. Even after divorce, your domestic support obligations are still present. However, you can get bankruptcy help for past alimony or child support payments if you file for Chapter 13 bankruptcy.
Since Chapter 13 bankruptcy works as a repayment plan, you can include past-due alimony payments in the plan. If the plan lasts up to five years, you will be able to complete it in 60 monthly payments.
A Chapter 13 bankruptcy case can help you avoid jail or other punishments if you cannot pay child support or alimony payments. But, you must make all upcoming domestic support payments on time.
Should I File For Bankruptcy After Or Before A Divorce?
You have many options for both divorce and bankruptcy. These options work more favorably depending on some factors such as your relationship with your ex-spouse, the property you have, the kind of bankruptcy you want to file, etc.
Contact a Gilbert bankruptcy attorney to get better guidance for your case. Bankruptcy lawyers are always the best option to receive a realistic debt-free solution according to your current situation.
Remember that many factors come into play when filing for bankruptcy before or after a divorce. It’s not the same as filing for bankruptcy with joint unsecured debts as filing with secured debts. Plus, it is not easy to understand the differences, hence the importance of contacting a lawyer.
What Happens If I File For Bankruptcy First?
If you want to file for a Chapter 7 bankruptcy, filing for the bankruptcy petition first may be the best solution. We remind you that filing for bankruptcy jointly can be more expensive than filing as a single person. Besides, when filing for bankruptcy first, the court may discharge all your qualifying debt.
Nonetheless, this alternative is eligible only for couples who are on good terms because it requires the cooperation of both parties during the bankruptcy. Keep in mind that Chapter 7 bankruptcy can last up to 120 days (or even more).
What Happens If I File For Divorce First?
If you earn less income than your spouse, filing for bankruptcy first won’t be useful. If you want to qualify for Gilbert Chapter 7 bankruptcy, you should file for divorce first. In some cases, both parties can qualify for bankruptcy and make a mutually beneficial debt-free solution.
Be aware of your combined income. If it is too high to qualify for a Chapter 7 bankruptcy, it may be best to file a bankruptcy petition after divorce.
You can also file for divorce first if you are worried about owing spousal support.
What Happens If I File For Both Simultaneously?
You can file for bankruptcy and divorce simultaneously, but it is usually unnecessary. This method can delay paperwork for everyone involved.
If you have already started the bankruptcy case and then decide to file for divorce too, the bankruptcy has to be concluded first. That’s because all assets and liabilities must be distributed before you reparse them during divorce procedures.
In the end, we know that bankruptcy and divorce are emotionally-charged life situations, so you should not take them lightly. Do your research, analyze the pros and cons, and talk to a lawyer to get the best outcome.
Who Can Help Me File For Bankruptcy?
It’s not easy to deal with the court system in Arizona. Contacting a Gilbert bankruptcy lawyer is usually the best move to get trusted and legal guidance during a bankruptcy case.
You and your spouse should be cautious about the best option in the long run. To help you with your bankruptcy doubts, we recommend you contact Gilbert Bankruptcy Lawyers. We have a well-experienced team of lawyers ready to help you get the best solution for your debts! Contact us now to schedule a FREE case consultation.