Many people may be lead to filing for bankruptcy because of a divorce or impending divorce. However, they may not consider if it is more beneficial to file for bankruptcy or divorce first. By taking some steps to plan your actions, you may be able to make your bankruptcy and possibly your divorce less complicated.
When people consider bankruptcy, they are generally concerned about the cost due to existing money issues. From a purely monetary standpoint, filing for bankruptcy before heading to divorce court does cut down on the costs. Filing for bankruptcy costs the same whether it is jointly filed or individually filed. If you do decide to retain a bankruptcy lawyer, your fees may be lower should you share the attorney versus getting your own. Filing for bankruptcy also will lower your debts and property, therefore making the division of your assets and obligations easier and less costly during the divorce proceedings. It is important to discuss your impending divorce with your bankruptcy lawyer before proceeding, however, to make sure there will be no conflicts of interest that will complicate your divorce.
It is important to consider the type of bankruptcy you want to file. A Chapter 7 bankruptcy is a liquidation bankruptcy and will wipe out your unsecured debts quickly. Usually it can be completed within a few months’ time. With Chapter 13 bankruptcy, however, you are put on a repayment schedule that must be completed within a 3-5 year period. This may complicate matters if you are also seeking a divorce since most people won’t want to wait 3-5 years to complete a divorce.
Filing for bankruptcy will put an automatic stay in effect for all property, so if you do so during a divorce, you will not be able to divide any property or assets until the process is completed.
You will want to consider your joint income as well. If your combined income is too high, you may not qualify for Chapter 7 bankruptcy.
If you are considering bankruptcy and are unsure whether filing for bankruptcy or divorce first is more beneficial to you, you need an experienced bankruptcy attorney at your side. Call today for your initial consultation.
Practice Areas
Staff is very friendly and helpful. They work with you and help you get back on track. No judgement just understanding. Simply amazing.
-Eric Nyman
Professional, responsive at a time when I felt so vulnerable and confused. Looking forward to going forward ftom here with HS&A.
-Deanna Cosens
HS&A recently represented me and did an excellent job of providing me with answers to my questions and efficiently handling my case. I felt well represented and informed throughout the entire process. I highly recommend them!
-Kate Sumbler
Great people, very through and kind. All of my questions and concerns were answered very professionally and accurate and in a very timely manner. My hearing went very smoothly. I was very pleased with my experience
-Thelma Rumble
Experience, Knowledge & Determination at a Trusted Civil Law Firm
Why Choose Michigan Bankruptcy Attorneys?
Compassion Backed By Experience
With over 15 years of experience, we know this is a difficult journey – and will treat you with the care and compassion you deserve.
Dedicated Problem Solvers
When you put our investigative expertise to work, we’ll dig deeper into the details than other attorneys – which makes the winning difference.
Respected in the Legal Community
With years of trial experience, we have long-established credibility with judges, insurance companies, and other attorneys.
Individualized Attention to Every Case
You’ll work directly with one of our attorneys, who treat every client as their only client. No matter how long it takes, we’ll see your case through.
