Parting Ways with Spouse and Creditors at the Same Time? Bankruptcy and Divorce

Financial problems are one of the leading causes of divorce in America. It is not hard to see how money issues and debt cause stress, and stress is, without a doubt, harmful to any relationship. Not all debt is caused by mismanagement of money, but clashing money management styles can certainly lead to many arguments and ultimately be quite harmful to a marriage.

Open communication and collaborating on a plan which would align your and your partner’s spending habits may help alleviate the tension and get you both on the road to recovery. However, sometimes, you are in too deep and a fresh start will resolve your problems more quickly and efficiently. In many cases, getting rid of the debt and financial problems can ease your stress and save the marriage.

In other cases, when divorce is inevitable for this or other reasons, an important consideration is whether to file bankruptcy before, during, or after the divorce. Going through bankruptcy and divorce at the same time is double the stress and probably not very efficient, as property distribution in the divorce would be on hold until the bankruptcy case is resolved. Not to mention the legal fees for divorce while still in debt.

In many cases, filing bankruptcy first makes sense and saves you money and stress. Divorces are expensive and, unfortunately, oftentimes messy. Getting rid of debt in the bankruptcy first would eliminate the need to divide liabilities in the divorce, which could potentially save you fees and time, and give you a clearer picture of your finances. It depends on which chapter of bankruptcy you would qualify for; however. A chapter 7 bankruptcy is relatively quick (as little as 3 months in most cases), so filing bankruptcy first, in this case, makes sense. However, if you would be filing a chapter 13, which could take 3 to 5 years, perhaps filing divorce first or simultaneously makes more sense.

Every case is different. If you are having money problems and it is affecting your marriage, try to work out ways to get on the right track together by managing money in a way that both of you feel comfortable with. If drowning in debt is causing harmful stress and arguments in your marriage, getting a fresh start in bankruptcy might be the best treatment. If, however, divorce is inevitable, you should consider whether filing bankruptcy before the divorce is a good option for you (depending on your objective, eligibility, and specific circumstances). In the end, whatever your situation may be at this time, the goal is to get a handle on your finances and reduce stress, as this will typically have a positive effect on your wellbeing.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 1,800 homes from foreclosure, eliminated $100,000,000 in mortgage principal and consumer debt, and have collected millions of dollars on behalf of our clients due to bank, loan servicer, and debt collector violations, negligence and fraud. Contact us for a free consultation to see how we may be able to help you and speak with our Fort Lauderdale bankruptcy attorneys today. Call us at 1-888-Fight13 (344-4813).