Divorce and bankruptcy are two of the most challenging and stressful situations anyone could experience. Divorce is likely to have a severe emotional and monetary impact on your life, and bankruptcy could impact your self-esteem and even your financial future. But there’s something that’s even more complex and overwhelming: having to deal with both simultaneously.
When faced with such a scenario, it’s easy to feel hopeless. However, even in these difficult times, you still have different options to get through both processes. Here we bring you a survivor’s guide to deal with divorce and bankruptcy. Read on to determine which process you should sort out first and how a bankruptcy attorney can help you get a fresh financial start.
Don’t file for both at the same time
As a general rule, you shouldn’t deal with two legal processes at the same time. When two legal issues overlap, they often complicate matters. For example, suppose you file for bankruptcy during your divorce proceedings. In that case, the family court won’t be able to access and divide the assets because of bankruptcy’s automatic stay. Therefore, the divorce may be unnecessarily drawn out, and it will have a harsher emotional impact on your loved ones.
This is why most people choose to file for bankruptcy before filing for divorce. However, the best option for you will depend on your specific case.
A Los Angeles bankruptcy attorney, such as KT Bankruptcy Lawyer, can analyze your case and help you determine how to proceed. Most bankruptcy attorneys offer free consultations, so you have nothing to lose by giving them a call.
A joint petition may be efficient
If you are on good terms with your soon-to-be ex-partner, a joint petition prior to your divorce may be the best option for both of you. Some benefits of a joint bankruptcy petition include:
- The bankruptcy will eliminate most of both spouses’ debts, and non-exempt assets will be sold during the process. This will reduce the problems to be addressed in bankruptcy court.
- It is cheaper to file a joint filing than two individual filings.
However, only one spouse may need bankruptcy protection, or that filing bankruptcy after divorce may be more sensitive because of the loss of income for both spouses.
Chapter 7 might be your best option
If you are thinking about filing bankruptcy before or after your divorce, Chapter 7 bankruptcy might be your best option. Chapter 7 eliminates all dischargeable debt in a matter of months. Therefore, it can be a quick solution if you decide to file bankruptcy first. Also, if you prefer to do it afterward, this fast alternative will allow you to get a financial start quickly.
On the other hand, Chapter 13 bankruptcy, the other most popular type of bankruptcy, may be a bad idea if you are getting divorced. This Chapter requires a commitment of at least three years to fulfill the repayment plan, so a joint filing may not be in your family’s best interest.
A bankruptcy attorney can help
If you are thinking about filing for bankruptcy before, during, or after your divorce, you should consider seeking professional help to deal with the process successfully. Any mistakes could hurt your chances of getting a fresh financial start. Therefore, contacting a Los Angeles bankruptcy lawyer may be precisely what you need.
How can you find an attorney near you?
Thanks to the modern digital world, finding a lawyer near you has never been easier. By simply searching for “bankruptcy lawyers near me” on Google or Bing, you can find multiple law firms ready to help you with whatever you need.
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