In every relationship, money plays an important role. This can be proved by the number of couples filing for divorce because of financial stress. Couples blame each other for debts incurred which could be the reason they would want a divorce. But couples should remember that their marriage can be divorced but their debts will stay with them even if they are divorced or not.
The debts that were acquired when they were married will make both parties involved responsible even after divorce. The debts will be divided when divorce is filed. This means that the creditor can collect from either one of you. But what happens if your ex files for bankruptcy after divorce? If this is the case, creditors will be collecting and harassing you until such time that you would also need to file for a divorce.
This is the reason that bankruptcy should be filed before filing for a divorce. The couple should think of the advantages and disadvantages of filing for bankruptcy first before divorce. One advantage in this situation is both individuals will just be filing for one bankruptcy case which means one bankruptcy lawyer and one bankruptcy fees. Another advantage is the fact that both individuals will not be harassed by creditors when bankruptcy is filed. Bankruptcy before divorce will eliminate the stage when the couple needs to fight over the division of debts. The couple are able to work on fixing their debt first before they start fresh with their lives being single again.
Instead of declaring an income individually, filing for bankruptcy before divorce will allow them to declare their income as a couple which will be included in means test if chapter 7 bankruptcy is filed.
Bankruptcy before divorce can be hard for both individuals especially if they are no longer communicating so some couples file divorce first before bankruptcy. If you opt to file for divorce first before bankruptcy, better be prepared for division of debts. There are instances where you ex spouse will be paying less than what you will be paying. There is a possibility that your ex will file bankruptcy first which will leave you in the hands of the creditors.
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Financial problems are one of the leading causes of marital difficulty and divorce in now day.And many times, divorce and bankruptcy go hand-in-hand.it may make more sense for you and your spouse to talk to a bankruptcy lawyer before you get divorced. At least that way you can get some good advice regarding the pros and cons of filing bankruptcy together first and then filling for divorce OR filing for divorce first and then filing individual bankruptcy cases.
Interesting article. I’m a real estate agent in Arizona myself, and things are pretty difficult around here. I’m grateful I have also been able to find a way to stay in the business