Brevard, FL- Financial issues can drive a big wedge between two people. If those two people are a married couple financial problems can drive them to divorce. For many couples, the best way out of their crushing financial burdens is to file for bankruptcy, but they may be unaware of how it will affect their Florida divorce. They will have questions like: Do I file for bankruptcy first? Or, do I file for divorce first?
Our team of divorce attorneys in Brevard, Florida recommend that of you plan on filing for Chapter 7 bankruptcy, you do so before you file for divorce. Chapter 7 is considered straight bankruptcy, in which the filers can have many of their debts dismissed. So, if possible, a couple should file for Chapter 7 bankruptcy before you file for divorce even though your bankruptcy can take time to resolve. By filing for join bankruptcy, you can eliminate some of the debts you share as a couple. Contracts such as car notes or mortgages that the divorcing parties don’t want to deal with or may be underwater can be eliminated in bankruptcy.
In some cases, a couple can divorce first and file for Chapter 7 separately if they weren’t able to file jointly.
If you do file for Chapter 7 before you divorce, you will eliminate many of the debts that could serve to tie up your divorce proceedings.
While divorce after Chapter 7 is preferable, if a couple plans on filing for Chapter 13 bankruptcy, they might want to file for divorce first and wait to file for bankruptcy until their dissolution is finalized. Chapter 13 is debt consolidation, so if you file for bankruptcy first, each spouse will have to make debt payments. It also takes a few to several years to complete Chapter 13, so time-wise divorce before woks best for most couples.
When a couple files for Chapter 13 before divorce, the bankruptcy court will take into consideration the amount or support a spouse will be awarded in the final judgment. Say for instance, one spouse is ordered to make support payments to their former spouse, they wouldn’t want their repayment plan to include income they can access. On the other hand, a support payment may just be the ticket a person needs to have their Chapter 13 bankruptcy plan approved.
If you and your spouse are in debt and are considering bankruptcy and divorce, you need to speak with a divorce attorney or bankruptcy attorney or both before making any decisions about your case. Deciding what to do about your marital debts can be exasperating and complex and without sound legal advice you could make some devastating mistakes that will negatively impact the outcome of your divorce and your bankruptcy.
If you aren’t sure what should come first, bankruptcy or divorce, let USAttorneys connect you with a divorce lawyer in Brevard, Florida to give you the information you need to make a wise decision. You can count on our team of divorce lawyers to work in your best interest.