Couples filing bankruptcy and going through a divorce need to carefully weigh their bankruptcy decisions.
Here are a few questions you should ask yourself and your potential bankruptcy attorney before you proceed:
Should We File Bankruptcy Together or Separately?
While some divorcing couples get along fine and may be able to go through a bankruptcy together with little to no problems, others may not be so amicable. Couples considering bankruptcy and divorce need to speak candidly with their bankruptcy attorney to determine whether it is best for them to file jointly or separately.
What Type of Bankruptcy Should We File?
The type of bankruptcy filed by the couples considering divorce will make a huge difference. Chapter 13 bankruptcy will require a time commitment of 3 to 5 years, while Chapter 7 bankruptcy can be relatively quick and end within a few months. Will you divorce during the bankruptcy time period? If so, you may not want to file bankruptcy jointly. Speak to your bankruptcy attorney about what is best for you.
What are the Risks Associated with Filing Bankruptcy Jointly/Separately?
Filing bankruptcy together or separately both have their inherent risks and rewards. Speak with a qualified bankruptcy attorney to find out what the risks are and decide which risks you’re willing to take. If you and your soon to be ex-spouse are on good terms, you may want to consider pre-bankruptcy planning. In pre-bankruptcy planning you can decide how you will handle all shared assets during bankruptcy and avoid many of the conflicts that arise between divorcing couples in bankruptcy.
Have Any More Questions About Divorce and Bankruptcy? Let us Know!
If you have any more questions about divorce and bankruptcy let us know. You can call us or fill out our contact form to set up a free consultation.