While this is a sad fact, it’s a very important topic I want to discuss with you today. It’s important because how you handle your bankruptcy can (and very likely will) affect the outcome of your divorce and vice versa.
Divorce and Bankruptcy
The order in which you file for divorce and bankruptcy, your income before and after divorce, and many other factors work together to determine your financial future.
So if you’re thinking about filing bankruptcy and you’re also thinking about the possibility of a divorce, then we need to discuss your entire picture in order to create a plan that has your best financial interests in mind now and in the future.
Your Bankruptcy Will Affect Your Future and Your Spouse’s Future
An important benefit of filing a Chapter 7 or Chapter 13 bankruptcy is to eliminate some or even all of your debts. However, if you legally divorce and then file bankruptcy after the divorce is final, then you could miss out on this benefit.
For example, let’s say that in your divorce, you agree to indemnify your spouse from a certain debt such as a car loan or a home mortgage. Later, you determine you are unable to service the debts you’re left with and you choose to file bankruptcy. You will not be able to discharge those debts from which you indemnified your spouse.
This means you’ll be stuck with those debts even if you are able to pursue a bankruptcy filing. Divorce and bankruptcy go hand-in-hand.
I always try to encourage my clients and potential clients to contact me as soon as the thought of bankruptcy crosses their mind. With mounting debt, time is not your friend. This is more true than every if divorce is also on the horizon.
Let’s Meet to Discuss Your Bankruptcy Before Your Divorce
If you and your spouse are thinking about bankruptcy and divorce, let’s meet as soon as possible to discuss your current situation and your future. Consultations are always free, and time is of the essence.
Contact me by phone at 720.605.4347 or click here to send me an email. We will sit down together to discuss your situation and your options for a better financial future.