Divorce and Bankruptcy: Filing for Bankruptcy during a Divorce

Divorce and bankruptcy have serious effects on each other, especially with regard to property and personal finance. When the marriage partners have overwhelming debts and are heading for divorce, bankruptcy may be a way to deal with the financial issues. Bankruptcy may be filed by only one spouse or jointly. The effect of bankruptcy on divorce proceedings is abrupt. An automatic stay stops all activities on divorce proceedings.

Need for Both Divorce and Bankruptcy Lawyers

Going through bankruptcy and divorce together may cause quite a bit of confusion and many complications. It will be best to find a bankruptcy lawyer at once to properly guide you, along with the lawyer who is helping you with your divorce. Having expert guidance with property settlements, alimony, child support and other financial issues is very valuable when you are undergoing bankruptcy and divorce at the same time.

Filing for Joint Bankruptcy during Divorce

Filing jointly for bankruptcy is an option if you share a large amount of debt. This may even make the divorce settlement much simpler, and filing bankruptcy jointly is cheaper. Filing individually for bankruptcy will make the creditors go after your spouse.

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