Which Comes First: Bankruptcy or Divorce?
With divorce being one of the leading causes of people filing for bankruptcy, it is important to make sure that both situations are filed appropriately and handled with extreme care. Fortunately, some steps can be taken to help you make your divorce and bankruptcy filings less expensive and more beneficial for both parties. Making the decision to file for bankruptcy before or after your divorce depends on a few factors, which could help to determine the best course of action. Here is what you need to know when filing for divorce and bankruptcy.
Filing before divorce
If you plan on filing for bankruptcy before filing for divorce, there are some benefits that you can take advantage of to save you and your spouse both time and money. It costs the same for joint and individual bankruptcy filings, which can save you a significant amount of money in court fees. Additionally, filing for bankruptcy before divorce can allow you and your spouse to get a better handle on your possessions. Don’t waste unnecessary time and money dealing with divorce costs. Take the time during your bankruptcy proceedings to simplify debt and property issues to take care of both issues effectively.
For people hoping to file for chapter 7, it is best to file for bankruptcy prior to your divorce. Since these bankruptcy proceedings can be completed in only a few months, it is smart to get your bankruptcy filed prior to beginning your divorce proceedings. Especially if you anticipate an especially lengthy divorce, filing for bankruptcy can be a solid place to start.
Filing after divorce
Individuals that are thinking about filing for chapter 13 should consider filing for bankruptcy after their divorce. Since this type of bankruptcy can last for up to five years, it might be best to get your divorce proceedings out of the way before you file for bankruptcy. Additionally, if you have more property than can be exempt in a joint bankruptcy filing, the best course of action is to file for divorce prior to bankruptcy.
Figuring out when to file for divorce and bankruptcy can save you and your spouse a great deal of time and money. Whether you decide to file for divorce before bankruptcy or choose to wait until you and your spouse have everything handled, it is smart to speak with a qualified attorney to help you ensure your proceedings go smoothly. For more information on chapter 7 bankruptcy in Las Vegas, contact DeLuca and Associates today at 702-252-4673.