Bankruptcy Advice – Filing For Bankruptcy and Divorce
Everybody goes through strenuous times in their life. Job loss, major illness, and unexpected pregnancies are just a couple of these. A leading reason why these situations are so stressful is because financial troubles are generally accompanied with them. In many cases, financial problems are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we occasionally see these two incidents happen at the same time. Whilst both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can result in 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 several options that you must take into consideration. This article strives 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 a variety of factors to think about.
To answer this question, you should look at your individual circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require lawsuits? Regularly, divorces are a very complicated process and there will be complications that develop without your prior consideration. This merely emphasises the value of effective research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on the best ways to distribute your assets and debts, and litigation is more than likely, the first step you should take is to look for a qualified divorce lawyer. The key to a prosperous outcome for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy professional and divorce lawyers will have to correspond frequently to ensure they have all relevant information to give you the best case possible. Whilst both events are separate, there are issues that will emerge in both cases that can substantially affect the result of each outcome.
In some cases, filing for bankruptcy before filing for divorce is favourable. Both you and your spouse have the option of filing a joint bankruptcy, in addition to individual bankruptcies. Commonly, both you and your spouse will owe creditors jointly, 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 greatly help to eliminate joint debt, and aids in the division of property when the divorce is eventually filed. While bankruptcy does not divide joint assets and debts, it can usually remove sizable amounts of joint marital debt.
The most prevalent challenge here is that filing for joint bankruptcy implies that you and your spouse have to make joint decisions. If this is not practical, then joint bankruptcy will not be a solution. Furthermore, 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 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 before, during, or following a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity to move on with your life and start anew. 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 situation where you and your spouse can agree and make joint decisions, then usually both actions will be less expensive and time consuming. What is clear is that you should devote the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to talk to someone about your personal circumstances, contact Bankruptcy Experts Sydney on 1300 795 575 or visit http://www.bankruptcyexpertssydney.com.au