Divorce and Bankruptcy in Mission Viejo
Is filing bankruptcy before divorce the right decision for you?
You can leave a marriage through divorce. The debts you or your spouse
incurred during this marriage will follow you even after you are divorced,
and the costs involved can be significant. In some cases, a decision to
file for bankruptcy after divorce is the only way to resolve debt. Creditors
will pursue you for debts you incurred over the term of your marriage.
This is regardless of whether or not you personally made the charge, wrote
the check or borrowed the money. Creditors will pursue you for charges
your spouse charged regardless of whether you approved the expense or
not. You are responsible. It can be a shock to have a creditor chasing
you for a charge made by a former spouse.
Should you file for bankruptcy or divorce first?
Making the decision on whether to file bankruptcy or divorce first is a
decision you will want to make carefully and with the help of a knowledgeable
family law attorney. Complications can occur if you file bankruptcy mid-divorce,
which could prolong divorce proceedings unnecessarily. When you file for
bankruptcy, your assets are tied up in bankruptcy court. Issues regarding
property settlements cannot then be determined for the purpose of divorce. In some cases, it
makes sense to get a
legal separation complete the bankruptcy process before filing for divorce. Based upon
the individual situation, it may be better for you to file once the divorce
is resolved. All of the new expenses you have, such as
child support and
spousal support, after the divorce is finalized can make a difference in qualifying for
filing Chapter 7 or Chapter 13.
In either case, we can help you make the absolute best decision to protect
your personal assets and help you start your new life. Contact Attorney
Daniel C. Hunter IV now for a
case evaluation . Your situation will be evaluated, and we can advise you of the best course
of action if you are suffering financial difficulties during or after divorce.