Reaching a juncture at which you and your spouse want to resolve mutual financial problems and terminate your marriage results in an interrelated legal situation. You must take care to undertake bankruptcy and divorce proceedings in a legally appropriate manner to ensure that you obtain the results you desire from both types of cases, according to "The Complete Divorce Handbook: A Practical Guide" by Brette McWhorter Sember.
Time Frame
Timing is everything when you desire to avail yourself of the benefits of divorce and bankruptcy laws. You and your spouse can file a Chapter 7 bankruptcy jointly provided you are married at the time. Commencing your bankruptcy first is the appropriate decision, according to "The Complete Divorce Handbook: A Practical Guide." Completing your Chapter 7 bankruptcy before you file for divorce also is advisable. Technically, the divorce court cannot make financial decisions absent approval from the bankruptcy court, a process the makes both case more complicated than necessary.
Function
The ultimate function of a Chapter 7 bankruptcy is to grant you and your wife a discharge of most, if not all, of your debts, according to Cornell University Law School. Part of the divorce process is to divvy up any remaining debts and all marital assets between you and your spouse, according to "Nolo's Essential Guide to Divorce" by Emily Doskow.
Considerations
You and your spouse can elect to file individual bankruptcies at the conclusion of your divorce case. Taking this course increases the expenses associated with a bankruptcy, including paying double court fees and hiring two lawyers. In addition, the possibility exists that by filing jointly, you qualify for a Chapter 7 bankruptcy. However, by filing individually after the divorce, one or both of you may not meet Chapter 7 bankruptcy requirements.
Benefits
The benefits of undertaking a divorce and a Chapter 7 bankruptcy include allowing you a fresh financial start at the conclusion of both cases. The reality is that starting life anew after the end of a marriage poses financial challenges. These challenges are minimized through a bankruptcy before the termination of a marriage.
Expert Assistance
Coordinating divorce and bankruptcy cases typically requires experience. Consequently, if you want to pursue a divorce and a bankruptcy, your best course likely is to hire an attorney for each case. Attorneys typically specialize in different areas of the law, including divorce or bankruptcy. The American Bar Association provides resources to assist you in finding attorneys who specialize in both of these legal arenas.
References
- "The Complete Divorce Handbook: A Practical Guide"; Brette McWhorter Sember; 2009
- Cornell University Law School: Bankruptcy Overview
- "Nolo's Essential Guide to Divorce"; Emily Doskow; 2008
