Filing for Chapter 7 Bankruptcy Before, During, or After a Divorce
If you are ready to file for a divorce because of a marriage under considerable financial strain, it’s time to look at your options. In a divorce in Georgia, marital assets and debts are divided in a way that is deemed fair or equitable. For the spouse that has a much lower income, this can mean responsibility for fewer marital debts and receiving more of the assets.
Debt, Divorce and Bankruptcy
When your spouse isn’t going to file for chapter 7 bankruptcy but you want to, it will benefit you to wait until the divorce is over to file. During your negotiations, you can try to take over the unsecured marital debt instead of debt such as back taxes. If your former spouse isn’t going to go for a chapter 7 bankruptcy, they should care about the type of debt they take on. The more you can discharge from a chapter 7 bankruptcy, the more certain your financial future may be.
If you have debt that is only in your name, you are assigned that debt in the divorce. Take a careful look at the overall debt of your marriage to see how to proceed in your best interests. If both parties can be amicable and both want to file chapter 7 bankruptcy, it can make the financial side of the divorce easier if you file for bankruptcy first.
Once you file for a bankruptcy as a couple, all marital and separate debts that are identified will be discharged in the bankruptcy. Once you are finished with the bankruptcy proceedings, you can see what is left to divide up. You’ll have one filing fee if you file as a couple, and you will only have to hire one lawyer to file the paperwork. For couples who can get through a bankruptcy and wait to file a divorce, this is a good route to take.
Filing for chapter 7 bankruptcy while a divorce is in progress can make the process confusing and overwhelming. It’s very stressful to handle both at the same time, and couples are encouraged to work through either the divorce, or the bankruptcy first to avoid problems with access to assets and property division.
Contact our Professional Bankruptcy Attorneys
When you know that your financial future can only be saved by filing a chapter 7 bankruptcy, it’s time to get yourself prepared to do so. You’ll want to get all information regarding your outstanding debt together, and run your credit report to make sure you aren’t missing anything. Talk with your spouse about the choices of filing together or separately, depending on your ability to communicate and get the job done.