Once you have reached the decision to seek or agree to a divorce, and once you have concluded that bankruptcy is inevitable to deal with your financial troubles, a logical next question is, "Which should come first, the divorce or bankruptcy?" Neither scenario is pleasant or what you envisioned when you got married or when you started out your adult life. Both divorce and bankruptcy have potential for pitfalls and snags.
When a marriage has failed, it can be particularly stressful and challenging to work together with your soon-to-be ex-spouse to gather all necessary documents and information to move your legal procedures forward. However, many bankruptcy attorneys may advise you to save money and hassles by filing bankruptcy before filing for divorce. As long as you are legally married, you and your husband or wife can file bankruptcy as one unit.
Filing for Bankruptcy & Divorce in Arizona
Even if bankruptcy before divorce makes the most sense, divorce is a particularly personal and emotional undertaking. Although money matters are the #1 stress factor in failing marriages, many people undergoing divorce find it challenging to face their full financial picture together in a businesslike manner. Many individuals go through the divorce still hoping that finances will improve once a big-spending spouse is no longer in the picture.
In too many cases, the same people who hoped divorce would bring relief are still unable to recover their financial footing and end up filing bankruptcy a few months after the divorce. If the other spouse does not file bankruptcy and is jointly responsible for debt from the marriage according to the divorce decree, but does not pay on that debt per obligation, the "innocent spouse" may face complications from creditors, regardless of what the divorce decree says about the debt.
Both a divorce and bankruptcy constitute major life events from a legal and financial standpoint. Both represent dashed hopes and dreams, in many cases. Divorce and bankruptcy often seem to go "hand in glove," in that one may trigger the other and certainly, each can impact the outcome of the other.
The best way to ensure that you make the right moves as you approach both divorce and bankruptcy is to talk to a trusted family law attorney and a reputable bankruptcy attorney early and often. Sketch out a master plan for proceeding through and surviving both divorce and bankruptcy. Look forward to debt relief and a fresh start as a single person free of debt with the help of an experienced lawyer or lawyers. Trust your own good sense and determination to emerge on the other side ready to re-establish credit and rebuild your life.
Arizona Divorce Planning and Bankruptcy - Attorney Consultations
To learn more about how Glendale and Phoenix bankruptcy attorneys at The Roll Law Office, PLLC, can help you get a financial fresh start, please contact us. Call 602-652-2403 or 866-603-1533 or e-mail the law firm through this website. We look forward to discussing with you how Chapter 7, Chapter 11 or Chapter 13 bankruptcy or debt settlement negotiations can work around your divorce situation and lead to the debt relief that you seek.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
