Both divorce and bankruptcy are very difficult things to deal with, but when they coincide, it becomes so much more difficult and complicated. Depending on your unique situation, and your debt, assets, income, and divorce details, you may need to do them one at a time or both at the same time. Before you continue with the process, you need to know a few important things.
- Filing for a joint bankruptcy before your divorce proceedings is a great option if you have joint debts. This will help to eliminate or reduce the debts owed and will put a stop to debt collection calls.
- If you decide to file for bankruptcy before filing for divorce, both spouses will receive protection. It will also help to save you money on attorney fees, since the same attorney can be used for both the bankruptcy and divorce proceedings.
- There are some drawbacks to doing them separately. Some of them include alimony and child support delays. This is one of the reasons that people tend to file for both procedures at the same time.
- During divorce proceedings, some couples choose to use separate attorneys if bankruptcy is likely to occur. This will allow both couples to receive appropriate legal advice during the process.
- If you want all your debts eliminated using a Chapter 7 bankruptcy filing, you may need to consider divorce to split up your median income and assets first. If your combined income is high, it may affect your bankruptcy filing negatively.
- If you wish to file for Chapter 7 or 13 bankruptcy, but your spouse doesn’t want to file for joint bankruptcy with you, you should probably consider filing for divorce first. If you are facing issues of wage garnishment or home foreclosure, you may want to try to convince your spouse to file for joint bankruptcy.
Bankruptcy and divorce can both be difficult situations, but by contacting a Honolulu bankruptcy attorney, you will be able to determine the best way to file both for you and your particular situation.