How divorce will affect your bankruptcy.
Going through divorce and bankruptcy at the same time can be confusing, to say the least, and it’s an important time to consult an experienced attorney because the division of assets in your divorce can have a big impact in how your bankruptcy plays out. Bankruptcy in itself is a complicated financial situation that someone should not be attempting to figure out on their own. A misfiled document or inaccurate statement could result in losing your chance to get out of bankruptcy with the best possible outcome.
The Bellinger Law Office can also advise you as to when, exactly, to file for divorce. You may be wondering whether it makes the most sense to wait until the divorce is finalized — you might already be going through with divorce proceedings, and realizing the toll it is going to take on your financial stability.
Whether or not you should divorce first will depend on your specific situation, including whether you are filing for a Chapter 7 or a Chapter 13 bankruptcy. A Chapter 7 bankruptcy can be completed quickly, but Chapter 13 bankruptcy proceedings can ultimately last for several years since they involve a debt repayment plan. In this situation, it might make more sense to file first for divorce.
A Chapter 7 bankruptcy also has household income limits, so if your joint income is too high, you may not qualify for Chapter 7 until after your divorce. Additionally, you need to take support considerations in mind. If your bankruptcy repayment plan is structured before the divorce, it might be based on the expectation of your former partner’s income. You will lose access to this income after the divorce, though, which can leave you with a repayment plan you can’t comply with.
Bankruptcy and divorce are two separate legal proceedings, and to get both systems working in your favor, you’ll need the help of an experienced attorney. If you have any questions about divorce and bankruptcy, Patenting Time or Child Support , contact our Fort Wayne divorce attorney at 260-428-2214, or contact The Bellinger Law Office online.