How Can Divorce Affect Bankruptcy?

: Chris Lee Law Firm

  Filed under: Divorce

divorce, couple, bankruptcy, relationship, finance, debt relieft, texas, dallas, fort worth, tx, mckinney, hurst, chapter13, attorney, attorneys, lawyer, lawyers, law firm,While most of us would hope to never be in the position of having to file for bankruptcy protection OR suffer the breakdown of our marriage but sometimes circumstance can lead to the point where both may be happening to us at the same time.

The number one reason typically listed for a couple to seek divorce is financial issues. The stress and arguments that can be brought on by financial instability can cause couples to find them themselves at the brink of one or both. How will going through a divorce affect your bankruptcy petition and would it be more beneficial to wait until after the divorce to move forward?

A lot will depend on what type of bankruptcy you are considering filing for. A Chapter 7 bankruptcy takes much less time than a Chapter 13, approximately 90 days from start to finish compared to several years for a Chapter 13 bankruptcy. Because of the length of time involved in a Chapter 13, and the repayment plan that it encompasses, it may well be better to file after the divorce and the division of property and assets is completed.

As for filing a Chapter 7 bankruptcy, you could potentially complete one before the divorce is finalized but again the division of assets could be problematic. You also run the risk that of not being able to file for this type if the joint incomes of both spouses is too high. The best course of action is to seek the advice of a Dallas bankruptcy attorney to get the needed advice as to which course of action is best for you individually.

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