Bankruptcy Advice – Filing For Bankruptcy and Divorce

Bankruptcy Advice – Filing For Bankruptcy and Divorce

Bankruptcy Advice – Filing For Bankruptcy and Divorce

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Everyone experiences challenging times in their life. Losing a job, severe illness, and unexpected pregnancies are just a handful of these. A leading reason why these situations are so traumatic is because financial problems are normally accompanied with them. In many cases, financial difficulties are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we occasionally see these two incidents happen at the same time. Though both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can bring about a drawn-out and distressing process for both parties.

If you and your companion have concluded that divorce and bankruptcy are the best options in moving on with your lives, there are various options that you must keep in mind. This article aims to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are a number of issues to consider.

To answer this question, you should take a look at your particular circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you intend 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 demanding process and there will be complications that appear without your prior consideration. This merely emphasises the importance of effective research and preparation.

If you’re confident that your soon to be ex-spouse will not see eye to eye on how to split your assets and debts, and litigation is more than likely, the first step you should take is to find a skilled divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy professional and divorce lawyers will need to talk frequently to make sure they have all relevant information to give you the best case possible. Whilst both events are separate, there are matters that will arise in both cases that can considerably affect the result of each outcome.

Sometimes, filing for bankruptcy before filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Commonly, both you and your spouse will owe creditors collectively, 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 considerably help to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can often eliminate considerable amounts of joint marital debt.

The most frequent issue here is that filing for joint bankruptcy means that you and your spouse have to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a possibility. Furthermore, once a divorce is filed, it’s very likely that both parties will not agree on issues relating to bankruptcy, further complicating the process. If your soon to be ex-spouse refuses 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 after a divorce.

While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity to move forward with your life and start anew. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is extremely important. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on competent law firms relating to both your divorce and bankruptcy. For additional information, or to talk to someone about your personal circumstances, contact Bankruptcy Experts Joondalup on 1300 795 575 or visit http://www.bankruptcyexpertsjoondalup.com.au

 

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