Couples who plan to divorce are often in financial situations that necessitate filing for bankruptcy. However, the order in which you file for bankruptcy and divorce is important and dependent on your situation. Read on to find out what you should proceed with first and how a seasoned Suffern New York bankruptcy attorney at the Law Offices of Allen A. Kolber, Esq. can assist you when you are ready to file for bankruptcy.
Should I file for bankruptcy before filing for divorce?
Couples filing for bankruptcy together will submit a joint petition, which contains the financial information of the two spouses in one set of documents. Couples who are separating will tend to file a joint petition together before starting the divorce process because it may be more efficient. For one, it is less expensive to file for bankruptcy together as opposed to apart. Also, the bankruptcy claim will discharge the qualifying debts of both spouses and thus simplify the issues to be decided in divorce court, such as property division.
Importantly, if a judge orders your spouse to pay a debt that you share in your divorce settlement, it will not impact the creditor. In other words, discharging your debt through a bankruptcy claim beforehand may be beneficial because if not, the creditor can go after either you or your former spouse to collect payment.
Specifically, if you are filing for a Chapter 7 bankruptcy, it may be in your best interest to file for this first. This is because, if you qualify, these cases last just a few months and can rid you and your spouse of your obligation to repay unsecured debts.
Under what circumstances should I file for bankruptcy after filing for divorce?
Contrastingly, if you are filing for a Chapter 13 bankruptcy, it may be best to wait to do so until after your divorce settlement. This is because this is a type of bankruptcy that involves you and your spouse entering into a repayment agreement that will last anywhere between three to five years, so it will significantly delay your divorce. Overall, it will allow you to retain more of your property.
If you have any remaining questions about how to proceed, do not hesitate in reaching out to a knowledgeable Rockland County bankruptcy attorney today that will guide you in the right direction.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.