People file for the bankruptcy course for a lot of different reasons. These different reasons are generally more complicated than just being unable to make the ends meet. Generally there are many other reasons which put stress on the household finances.
A lot of times, the financial problems and the need for the bankruptcy relief are brought on by a failing the relationship.
Bankruptcy cases which include any pending or any recent divorce always need to be analyzed properly by the bankruptcy attorney. The applicant should always remain aware of the issues related to divorce that can have on the bankruptcy case and also that the bankruptcy can put on the divorce case.
Bankruptcy or Divorce: Which should be done first?
Usually the most common question that we hear from the potential clients that is considering the bankruptcy and divorce is what should we do first? Unfortunately, most of the times, the most common answer to this question is that ‘it depends’.
In order to correctly determine that whether the bankruptcy or divorce should come first, the applicant must consult any qualified attorney. Talk with the bankruptcy attorney about how the person should plan on process of dissolving the marriage. Is the divorce going to be agreed upon or uncontested? Or are there are many issues that will be required litigation or contestant? There are many things that can come in the proceeding of the divorce that can change this plan, but the applicant should still have to properly discuss with the bankruptcy attorney.
If the applicant filing for the divorce is pretty confident that the spouse will not agree on how one should divide the debts and assets, and it looks like as if the litigation cannot be avoided, then the first thing one must do is to hire any competent divorce attorney. In general, having counsel in the process of the divorce and bankruptcy is the paramount to the success, especially when the divorce will be going to be contested. The applicant of bankruptcy must get the sound advice on both the cases and get attorneys that can efficiently communicate with one another will be very helpful for both of them.
How will the debts and assets be divided?
One another issue that one must consider while going for the divorce is “How one you should divide the debts and assets?” The divorce generally determines how the marital assets including the property should be properly divided. The final decree of the divorce will also dictate that what type of debts each of the spouses should pay. If spouses owe any type of the joint debt like the car loan or credit card that they have together then the divorce decree must tell that which spouse is responsible for paying the debt for these things. The creditor to whom these debts are owed still cannot collect debts from the spouse of the bankruptcy. Bankruptcy course or debtor education course should also be commenced by the applicant.