What You Need to Know About Bankruptcy and Divorce

What You Need to Know About Bankruptcy and Divorce

There are a number of reasons to consider filing bankruptcy. A major life event, like divorce, can certainly put a strain on finances, and if there’s a dispute between assets or paying debt that was acquired during the marriage, hiring a bankruptcy lawyer to begin the process may be your best option. Whether financial disagreements led to the dissolve of the marriage or settling the money is just an item on the ‘to do’ list, bankruptcy cases that involve an ongoing or recent divorce must be analyzed carefully by your  bankruptcy attorney.

Should I File Bankruptcy Or Divorce Papers First?

If you’re in a situation where you haven’t yet filed for divorce and you’re also considering bankruptcy a sensible question to ask your bankruptcy lawyer is which should you file first? Have an open conversation with your attorney about how you plan to terminate the marriage. Describe to your Myrtle Beach bankruptcy attorneys if the divorce will be agreed upon or will require litigation. If litigation is inevitable, you’re first move should be to hire a competent divorce lawyer.

While it will be more costly up front, having a divorce lawyer and bankruptcy lawyer to handle each issue independently will be critical to the success of each case. Your attorneys can communicate with one another to ensure the cases they are presenting complement one another.

How To Divide Assets And Debts?                                                                                              

A divorce determines how you and your partner will split your property, including your home, cars, furniture and more. The divorce decree will also spell out how the two of you will pay debts you acquired during the marriage. It’s important to know that whatever debt you agree to take or are ordered to pay, you cannot discharge that debt in a subsequent bankruptcy case.

If you’ve just finalized your divorce, have your divorce decree handy when you meet with your bankruptcy lawyer in Myrtle Beach. Your attorney will need to look through the decree to see which debts you must continue paying and which are eligible for bankruptcy.

File Bankruptcy Jointly Or As Single?

If you and your spouse are planning to divorce but are also considering filing bankruptcy, you’ll face the question of whether you should file bankruptcy jointly or separately. While each case is unique, if it’s possible, filing jointly will save money in court costs and attorney fees. Filing jointly in bankruptcy court will also alleviate the issue we described above of discharged debt. If you and your spouse file bankruptcy and then divorce, the creditor will have no one to contact for payment as you’ve both discharged your liability in bankruptcy court.

When facing a divorce and bankruptcy, the key is communicating with your bankruptcy attorney. If you’re in the middle of a divorce, or recently finalized one, bring the divorce decree to your attorney’s office. In many cases, filing for bankruptcy together prior to a divorce, can make for a much smoother and less costly divorce proceeding.

Myrtle Beach Bankruptcy Attorneys

We have handled many cases and helped many people navigate the steps through filing for bankruptcy in Myrtle Beach and the surrounding areas. Call us for a private consultation today.