Bankruptcy Advice – Filing For Bankruptcy and Divorce

Everybody goes through challenging times in their life. Loss of employment, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these events are so stressful is because financial difficulties are often accompanied with them. In most cases, financial problems are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two situations happen at the same time. Even though both actions are separate, the emotional features 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 come to the decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a variety 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? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are various issues to consider.

 

To answer this question, you should go over your individual circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require lawsuits? Usually, divorces are a very demanding process and there will be issues that develop without your prior consideration. This simply emphasises the value of adequate research and planning.

 

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

 

In some cases, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Usually, both you and your spouse will owe creditors collectively, 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 substantially help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can often eliminate sizable amounts of joint marital debt.

 

The most frequent concern here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. Also, once a divorce is filed, it’s highly likely that both parties will not come to an understanding issues 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 at any time prior to, during, or after a divorce.

 

While both bankruptcy and divorce are difficult and time-consuming processes, they’re also a chance 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 very 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 spend the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to talk with someone about your personal circumstances, contact Bankruptcy Australia on 1300 795 575 or visit http://www.bankruptcy-australia.net.au