Filing for divorce can already be extremely difficult on its own, but throwing bankruptcy into the mix can make things much worse. Filing for bankruptcy and divorce at the same time is almost always an unwise decision, and rightly so. Below you’ll find a guide as to why you should keep bankruptcy and divorce separate, as well as which one to prioritize if possible.
How Bankruptcy Affects Divorce
To make it clear, filing for bankruptcy will not stop the divorce proceedings as it would before a foreclosure or repossession. It can, however, delay the distribution of assets until your bankruptcy case is completed. This can mean that whatever property you may have planned to split with your spouse, is free to be taken to pay back creditors for your debts.
Putting Bankruptcy First
If you and your spouse are on good terms, it may be advantageous to file jointly for bankruptcy while you are still married. This makes for a smoother process that can wipe out debt for both of you, and make dividing assets even easier in the divorce process.
A joint bankruptcy can also eliminate contracts that neither of you wishes to keep, such as car loans or mortgages that you are deeply in debt in. You may also be able to increase the amount of exempt property that you want to protect, as well as reduce attorney fees and court costs by filing jointly instead of filing separately after a divorce.
Contact Our New York Bankruptcy Team Today
Filing for divorce and bankruptcy at the same time is tricky, to say the least, but the team here at The Law Office of Julio E. Portilla, P.C. has your back. We have the experience you need to provide compassionate and personalized services to get you back on your feet.
If you have any questions at all about filing for bankruptcy with divorce, do not hesitate to contact us today through our website, or give us a call at (917) 909-6166!