subject: Should I file Bankruptcy Before Divorce or After? [print this page] Should I file Bankruptcy Before Divorce or After?
Though there are a lot of reasons behind the divorce, one of the most common reasons is the financial troubles. Bankruptcy before divorce can be a nightmare to most of the people. Both bankruptcy and divorce are very difficult topics to handle. Divorce does not settle all the debts until and unless the debts are divided between both you and your spouse. As the financial and marital issues are very closely linked to each other, it is always a good idea to take advice from the financial experts of professionals or a lawyer to file bankruptcy before divorce. In most of the cases it really gives a huge number of benefits. It allows you to have a fresh start and give you the stability in the future.
Bankruptcy may be a very genuine possibility for both of you after the divorce. If you want to wipe out certain debts it is better to file a joint bankruptcy. Filing bankruptcy before divorce is approved makes sense in many cases. Not only it will save you both from the trouble of filing separately, but it also may make division of debt and property easier, too. As finances are settled through bankruptcy, there is a possibility of settling the marital issues along with it which will affect the divorce process also. But if this is not the case, file bankruptcy before divorce makes the division of possessions and debts easier in divorce settlement. This will also help you to get all the debts that you will be held responsible for future.
The main thing to remember is that any debt you earn during marriage is the duty of both you and your spouse. Even if your ex-spouse presumes a debt in the divorce settlement, you may be held in charge for it if he or she fails to pay the debt. So, when it comes down to Divorce and debt, most of the problems can be resolved with the knowledge of Federal Trade Commission. When someone is planning for a divorce, it is better to close all the joint accounts and the credit card accounts before the divorce occur so that spouse cannot access those accounts.
On the other hand if you have any debts that took place before marriage, you will be exclusively responsible for that. If bankruptcy and marriage occurs at the same point of time, filing bankruptcy before divorce can be to some extent traumatizing. One thing that you should keep in mind is the debtor will know very easily the way of handling the assets before and after bankruptcy and divorce. So, it is very essential that the spouse and the debtor should think about the automatic stay. If you are dealing with the financial difficulties, do your best not to let your feelings take priority over your intellectual ability. Make sure that if you are going to file bankruptcy before the divorce, you need to fully understand what state you have created and make sure how you will never do it again.
