Should I File Bankruptcy Before or After Divorce?
Considering Divorce? The Timing of Your Bankruptcy Can Make a Big Difference
Financial problems and overwhelming medical debt are two of the leading causes of bankruptcy. The strain of worry, working two jobs to make ends meet, and arguing over which bills get paid can take a toll on a marriage.
If you and your spouse have decided to divorce and you have a considerable amount of marital debt, it's wise to talk with a bankruptcy lawyer before you call a divorce lawyer. How — and when — you handle your debt can make your divorce easier and your life after divorce more financially secure.
The Denver bankruptcy attorneys at Greenwald & Hammond are here to help. We will review your financial picture and advise you on the drawbacks or benefits of filing for bankruptcy before or after your divorce.
This is not a one-size-fits-all situation. There are a number of specific factors that must be considered so it's best to talk directly with a bankruptcy lawyer and not rely on the advice of a divorce lawyer. Contact our Denver law office to schedule a free initial consultation. We represent clients throughout the Denver-Aurora metro area.
An Unexpected Debt Nightmare to Avoid
Debts incurred during the marriage are usually considered marital debt. That means that if the bill is not paid, either party can be held financially responsible. If one spouse declares bankruptcy after a divorce, creditors will come after the other spouse, even if the divorce decree clearly stated that the debt belonged to the first spouse.
Debt Issues to Consider in Divorce
In divorce proceedings, spouses must decide on asset division and debt division, who will get which bills, and who will keep the home (an possibly the upside-down mortgage). In some situations it makes sense to file for bankruptcy after a divorce. In most situations, however, it's best to get rid of the debt together, before you file for divorce. Neither spouse can then be stuck with unpaid bills and you won't have to pay for accounting help to understand the complex financial assets in the property settlement process.
Whatever your reason may be, whatever your situation, ask an attorney to review it before you move forward with a divorce or personal bankruptcy.
Contact Us Today
When you are ready for real solutions, contact the law office of Greenwald & Hammond, P.C.