Should I File for Bankruptcy before or after the Divorce?
Divorce and financial concerns go hand in hand, and if bankruptcy is in the picture, you undoubtedly have questions about when to file. The bottom line is that it depends on the unique circumstances of your case and your situation. Discuss your bankruptcy-related concerns with an experienced Columbia, SC bankruptcy lawyer today.
Divorce and Bankruptcy
Divorce and bankruptcy are more interconnected than you may realize. Debt is often cited as the cause of divorce, and divorce is often the underlying cause of bankruptcy. In other words, you are in a difficult situation, but you are not alone – and help is available. It’s important to note that there is no one-size-fits-all approach to bankruptcy, and the right path forward for you will depend on your situation.
When Filing for Bankruptcy First May Be Advised
Filing for bankruptcy prior to divorce can make sense in relation to certain factors.
Bankruptcy Exemptions
Married couples are afforded certain bankruptcy exemptions, which you can take advantage of as long as you are still officially married. With these exemptions, you could potentially protect more of your assets than you would if you waited to file post-divorce.
Simplification
There are instances when filing for bankruptcy prior to divorce simplifies the matter of property division. Discharging debt before you divorce allows you to take that challenging piece out of the property-division puzzle.
Decreased Expense
If you and your divorcing spouse are both likely to file for bankruptcy once your case is finalized, doing so prior to divorcing can be less time-consuming and less expensive than filing separately would be.
When Waiting to File for Bankruptcy May Be Advised
There are also situations when waiting to file until your divorce is finalized may be advantageous.
You Are Looking at Chapter 13 Bankruptcy
Chapter 7 bankruptcy is a relatively simple process that can discharge a considerable amount of debt in from four to six months. If your assets exceed the limits set by the means test, however, you’ll need to file for Chapter 13 bankruptcy, which locks you into a three to five-year repayment plan and, as such, is something that you may not want to collaborate with your ex on moving forward.
Your Divorce Is Contentious
The more contentious your divorce is, the more difficult working together toward bankruptcy is likely to be. Under these circumstances, putting the matter of your divorce behind you before addressing bankruptcy may be advised.
Your well-respected bankruptcy attorney will carefully evaluate your situation, help you explore your best options, and effectively and efficiently guide you through the bankruptcy process that makes sense for you.
Discuss Your Case with an Experienced Columbia, SC, Bankruptcy Lawyer Today
The resourceful Columbia bankruptcy attorneys at Reed Law Firm recognize how challenging the intersection of bankruptcy and divorce can be. In response, we will leave no stone unturned in our focused efforts to help protect your financial rights through a bankruptcy filing that works for you. Learn more by contacting us online or calling us at 803-726-4888 today.
