How Can Personal Bankruptcy Impact a Divorce Case?
Are you currently separated from your spouse and planning for divorce while you are also getting ready to file for bankruptcy? Often, when couples are having financial problems, they are also having marital problems. This means that there are numerous South Florida residents who are considering bankruptcy and divorce concurrently. While it is possible to file for divorce and bankruptcy at the same time, it is important to learn more about how bankruptcy cases can impact divorce cases, and vice versa. Under some circumstances, it might make sense to go through a bankruptcy case before you go through a divorce. And in other situations, it might make more sense to divorce before you begin working with a bankruptcy attorney in West Palm Beach.
An experienced bankruptcy lawyer at our firm can give you more information about some of the key ways a personal bankruptcy can impact a divorce.
Filing for a Joint Liquidation Bankruptcy Can Simplify a Divorce
If you and your spouse are both planning to file for Chapter 7 bankruptcy, and you are considering the possibility of filing jointly for bankruptcy before you move forward with your divorce case, it is important to know that a liquidation bankruptcy may be able to simplify your divorce case immensely. A liquidation bankruptcy will result in all of your non-exempt assets being liquidated, and you can have eligible debts discharged. What does this mean for your divorce? In short, there will be significantly fewer assets to classify and to distribute, and significantly fewer debts to classify and distribute. Accordingly, your divorce might be able to go much more quickly, and you may even qualify for a simplified dissolution.
Even if you are married and planning to file for Chapter 7 bankruptcy individually, it might make sense to do so before your divorce in order to clarify what separate assets and debts you have during your divorce case.
Filing for a Reorganization Bankruptcy Might Complicate Life After Divorce
While going through a Chapter 7 bankruptcy case before a divorce can often simplify the divorce, a joint Chapter 13 reorganization case might complicate your divorce and life after your divorce has been finalized. Since Chapter 13 bankruptcy requires a three to five year plan, with regular monthly payments, spouses can be tied to one another for years after filing.
If you are planning to file for Chapter 13 bankruptcy separately (in other words, you are not planning to file with your spouse), your divorce might not be impacted, but you should speak with a bankruptcy lawyer to discuss the implications before filing.
Contact a West Palm Beach Bankruptcy Attorney
Whether you are simply looking for more information now or answers to questions about bankruptcy, or you are ready to begin the process of filing for bankruptcy, an experienced West Palm Beach bankruptcy lawyer at Kelley, Kaplan & Eller is here to assist you. Even if you are unsure about whether you are ready to file for bankruptcy given the state of your divorce, we can help you to prepare and to make a plan. Do not hesitate to get in touch with us for more information.
Sources:
law.cornell.edu/uscode/text/11
experian.com/blogs/ask-experian/how-to-handle-bankruptcy-and-divorce-at-the-same-time/
