Help Line: 833-PLG-HELP
Help Line: 833-PLG-HELP
Nassau: 516-873-8783
Suffolk: 631-673-1000
Palacios Law Group
View Our Practice Areas

Bankruptcy And Divorce

bankruptcy-and-divorce2.jpg

It's an unfortunate combination, but couples who are dealing with divorce also have to worry about the financial aspect of being alone. If you know you are going to have a divorce, but also have racked up a large sum of debt, then you may not be sure of which comes first, the divorce or filing for bankruptcy.
Usually, bankruptcy is what you will need to focus on more than filing for your divorce. If you file for bankruptcy during a divorce, it can delay the distribution of assets and liabilities until it is completed. You cannot finish the divorce until the bankruptcy is completed. This results in no real way that you can do it at the same time. It would be beneficial for you to handle each problem separately. The court will also treat your income differently depending on whether you are married, separated, or divorced when you file the case.

We recommend filing for bankruptcy first if you and your spouse are on good terms. If you file as a joint couple, the debt will be addressed under one case. If you have any joint debt, you can handle that together. Filing while you are still married may also be a way to increase your exemption amount. It could also eliminate contracts that neither of you wants. Chapter 7 bankruptcy should be finished within 90 days. If you file for Chapter 13 bankruptcy, however, you will both be responsible for the repayment plan. This may also prevent you from dividing assets by sale.
If you are considering filing for divorce first, this may be the better option if your joint income is too high to qualify for chapter 7 bankruptcy. There are many cases that the 2 individuals would qualify for chapter 7 bankruptcy as individuals, but would not if they were joint.

Always contact a lawyer if you are unsure what the best option is for you. Palacios Law Group is always here to help.

Source:
click here--> All Law

No Comments

Leave a comment
Comment Information
Email Us For A Response

We Are A Multidisciplinary Firm Serving New York

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy