If you and your spouse are looking into filing for bankruptcy, though you are also looking to get divorced, this poses an obvious question: which should come first. Please continue reading and speak with our knowledgeable Rockland County bankruptcy attorney to learn more about bankruptcy and what the best option is for you. Here are some of the questions you may have:
Are both spouses responsible for debt accrued during a marriage?
In many cases, the answer is yes. Generally speaking, debts accrued during a marriage are considered marital property, and as such, will be divided equally during the equitable distribution process, meaning both spouses will be responsible for paying it off. It is for this very reason that many spouses will simply seek to file for bankruptcy before filing for divorce, however, filing for divorce before bankruptcy also comes with certain benefits, depending on your situation.
Should I file for bankruptcy before I file for divorce?
If you choose to file for bankruptcy before filing for divorce, you may save money in various ways. For instance, you will save on filing costs, as filing for joint bankruptcy allows you and your spouse to split the cost of the filing fee, which is the same as filing for individual bankruptcy. Additionally, filing for bankruptcy before filing for divorce will also save you a great deal on lawyer fees, as you will only have to hire one attorney. As you can imagine, lawyer fees can add up, and filing a joint bankruptcy may save you and your spouse drastically in the long run. Finally, in many cases, there are various types of property that are exempt from being liquidated in the bankruptcy process. The more property you have, under certain circumstances, filing a joint bankruptcy may allow you to protect more of that property.
Why should I file for divorce before filing for bankruptcy?
This is generally only the case if you and your spouse have particularly high incomes. Many individuals find that Chapter 7 bankruptcy is ideal for them, however, if you and your spouse each have incomes that are high enough to make it so you would not qualify for Chapter 7 by filing jointly, you may wish to divorce first and then qualify for Chapter 7 on your sole income.
Contact our experienced New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represents clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.