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Bankruptcy & Divorce
Divorce and bankruptcy are difficult experiences. This is especially true when a person is tackling them both. It might feel like the center of a hurricane and tornado without an end in sight.
If you are facing this scenario, you are not alone! Many people go through a divorce and bankruptcy back-to-back, or sometimes, at the same time. When there is so much going on, it might be hard to see the other side. However, with the right support network and lawyers, these difficult events might the first step to a new start. When you are at the end of an unhealthy marriage and upside-down finances, you deserve a fresh beginning towards a healthier life!
Before filing for either, here are some important things to keep in mind:
- Create a plan. Discuss your options with experts, like your team at Whitten & Whitten. A solid plan will make your divorce and bankruptcy less stressful. Take a long hard look at what debt, property and possessions you have and decide what type of bankruptcy to file. CLICK HERE for a quick guide on Chapter 13 and CLICK HERE for to learn more about Chapter 7. Chapter 7 is often chosen for a quicker divorce. Make sure to talk to Whitten & Whitten for guidance on this decision.
- Decide What Comes First. Should you file for bankruptcy before or after a divorce? This depends on many factors like, what kind of bankruptcy you file, how much and what kind of debt you have, property you own, and other factors unique to your scenario. For some, divorce is filed first and when all is settled, bankruptcy is filed. For others, bankruptcy comes first. Consulting legal counsel is of utmost importance in this decision.
- Don’t File for Both. Filing for divorce and bankruptcy simultaneously isn’t the best move for most situations. This is because it can make each process more difficult. Divorce will require splitting up assets, which is impossible when assets are frozen due to bankruptcy. As a result, the divorce can become drawn out, which no one wants.