It is perhaps not surprising that pending bankruptcy and pending divorce often go together. On the one hand, disagreement about financial matters is often a symptom and trigger of marital problems. On the other hand, many couples today rely on two incomes to maintain the lifestyle they are both accustomed to. Financial problems often build as a divorce approaches. If debts outweigh the spouses' ability to repay, bankruptcy may be a reasonable financial solution.
Keep in mind that both spouses do not necessarily have to file bankruptcy. However, if there are large amounts of debt in both spouses' names, it may be a key component of the most advisable path forward for both of you.
If both spouses have determined that filing bankruptcy is the answer to overwhelming debt, the next question is whether this should happen before or after the divorce. In most cases, our advice at P.R. Smith Law Group P.A. is that filing bankruptcy before a divorce makes the most sense. There will be only one bankruptcy fee to pay rather than two. Even if a marriage is on the rocks, spouses' financial interests are often aligned when it comes to overwhelming joint debt.
What if you believe that bankruptcy is inevitable but your estranged husband or wife will not cooperate? Of course, you cannot file bankruptcy on his or her behalf without a signature and without a joint appearance of both of you at the 341 creditors' meeting. Filing bankruptcy as a couple might not be an option for you. Talk to a bankruptcy lawyer as early in the planning stages of the divorce as possible to determine the most reasonable path forward.
On the other hand, if your divorce is amicable and your husband or wife understands the benefits of filing bankruptcy together with you, P.R. Smith Law Group P.A. is prepared to help you accomplish your goal of debt relief as efficiently as possible. Once the bankruptcy discharge or restructuring is on the way, your divorce will be much less complicated.
What if your divorce is recently completed and costs of the divorce itself are the problem? Talk to a bankruptcy attorney about the importance of timing before moving forward.
Other points to keep in mind regarding divorce and bankruptcy include the following:
- Child support and alimony are not dischargeable debts in bankruptcy.
- Any obligations to pay or indemnify your ex-spouse pursuant to a marital property settlement agreement are not dischargeable debts in bankruptcy.
- It is understandable if you feel confused or bewildered by the changes and challenges in your life. This is why you should consult with a knowledgeable attorney regarding your financial situation as you deal with both divorce and bankruptcy.
Filing Bankruptcy Before or After a Florida Divorce? What About Debts From the Marriage or Debts From Divorce? Schedule a Free Initial Consultation at P.R. Smith Law Group, P.A.
For more information on divorce or bankruptcy or to speak with an attorney about your rights, contact the P.R. Smith Law Group to schedule a free initial consultation. Call one of our Florida offices toll free at 888-682-5251 to make an appointment in Tampa or elsewhere.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
