Divorces bring on alot of financial distress. Couples that had two incomes together now have just one income with a new set of expenses. Many times financial problems create the divorce and the divorce just compounds the problems. The financial impact of a divorce can be devastating to one or both spouses. Associated with the additonal financial burdens is alot of stress and uncertainty. Many adjustments have to be made, lifestyles often lowered, and spending reined in. With unpaid or late payments, interests rates soar and creditor pressure is applied. Not only are the adults affected, but the children are too.
If the marital debt is significant, then a bankruptcy can be a very good option of getting debt relief. There are some couples though seperated and moving towards divorce that realize this and work together to file a joint Chapter 7. This is permissible as long as long as they are still married before the bankruptcy filing date. We have even worked with couples that file together but request that they review and sign their bankruptcy petitions seperately in our office. We accomodate and help them with their goals of being debt free. By filing together as opposed to seperately a couple usually saves around $1000. It may be even more. Thats quite significant.
Sometimes its not practical for both spouses to file together. This happens ususally when one spouse does not want to file, or the relationship is too bad. Sometimes a seperated spouse files and the other spouse has no idea of the bankruptcy until all the creditors start hounding them. The rule on joint debt, is that they can collect the entire amount from one party. So if one spouse files, then the creditors will look towards the other spouse to collect from unless the debt is in just one persons name. The same applies after the parties are divorced. When one divorcee files, then the other needs to consider filing.
We have successfully completed thousands of bankruptcies and divorces. We have clients who retain to help them with both legal needs. Our expertise in each area helps the client tremendously. Typically we do the bankruptcy first before proceeding on with the divorce work, but there are exceptions. If you are considering filing either a divorce or a bankruptcy, or both and have any questions, please email them to dmccormick@dmmlegal.com We will be very responsive, which is the way we practice divorce and bankruptcy law. We have handled over 17,000 bankruptcy cases in our 17 year history. We are equally as experienced with these types of legal matters as we are with divorce. So you can feel comfortable putting your situation is our hands and allowing us to guide you to the most beneficial outcome. Contact one of our offices today by calling (757) 918-8365.
