A bankruptcy attorney Moreno Valley CA can advise you as to whether you should file for bankruptcy before or after filing for divorce.
A bankruptcy attorney Moreno Valley CA can advise you as to whether you should file for bankruptcy before or after filing for divorce.Divorce raises a lot of issues about how a couple’s life with be reorganized after separation. After child custody issues, financial issues are probably the most contentious parts of a divorce. If you and your spouse have significant debts, you may want to consult with a bankruptcy attorney Moreno Valley CA before filing for divorce. Your bankruptcy attorney will be able to advise you as to whether you should file for bankruptcy before or after the divorce.
Need to Save on Legal Fees?
By filing for bankruptcy before divorce, you can save on court fees and payments to your bankruptcy attorney Moreno Valley CA because you only have to file a single bankruptcy petition rather than two separate ones.
Want to Divorce as Quickly As Possible?
If time is of the essence in your divorce, you will definitely not want to file Chapter 13 before divorcing. Chapter 13 bankruptcy results in the creation of a 3 to 5 year repayment plan for your debts. If you need to file Chapter 13 but don’t want to stay together that long, you will naturally want to wait until after the divorce to initiate the process. If you are filing for Chapter 7, the process is much quicker and you can definitely do it without delaying your divorce significantly.
Have a High Joint Income?
Chapter 7 bankruptcy has an income limit. Therefore, if your combined incomes are too high, you will not be able to file for Chapter 7 before divorcing. However, after divorce you may qualify and be able to use Chapter 7 to eliminate unsecured debts like credit card bills.
Worried About Joint Debts Coming Back to Haunt You?
When you file for divorce, you typically have to agree to pay half of any jointly held debts. Once you do this, those debts cannot be included in your own separate bankruptcy. This means that if you get divorced and file for bankruptcy to discharge your own debts, your spouse can still hold you responsible for your share of those joint debts. It is often better to wipe the slate clean before divorce by filing for bankruptcy together so that this doesn’t happen.
Of course, there is no easy answer to the question of when a divorcing couple should file for bankruptcy. It all depends on your unique situation. That’s why the advice of an expert bankruptcy attorney Moreno Valley CA is necessary.
