Posts Tagged ‘divorce and bankruptcy’

The Legal Aspects Associated with Bankruptcy and Divorce

Things can become very complicated if you have to deal with both bankruptcy and divorce at the same time. There is so much drama involved that mistakes are very much likely to happen, no matter how hard you try to avoid the same. If you have ended your marriage and now filing a petition to be declared as bankrupt, you must carefully plan everything.

Divorcing Your Partner Does Not Mean A Break From The Joint Debts

You are liable to pay for the joint debts even after divorcing your partner. Both of you still owe the same, especially the unsecured debts, such as credit cards. Even if you never used the cards, if it was taken jointly in the name of both the spouses, you may start get collection calls to pay the same. Therefore, while you are dealing with the divorce proceedings, it is very important for you to address all these issues thoroughly. If there are joint debts, both you and your spouse will be liable for it – there’s no easy way out.

Dealing with Secured Debts

When you have to deal with both bankruptcy and divorce, it can put you in a very painful situation. Luckily, things are not as complex when it comes to handling secured debts. Whether it is a mortgage loan or a car loan, most possibly, only one partner is going to keep the car or the home when divorce takes place. So, you can easily make a mutually agreeable decision in this regard that which partner is going to keep the properties and how the other partner is going to be compensated.

Closing And Freezing Of Accounts

In case you still have some joint accounts active even after you have divorced your partner, you may consider closing or freezing all those accounts immediately to stop further financial bleeding. Once you do this, you must gather relevant documents in proof of your claim that you should not be liable for these accounts anymore because the marriage has dissolved.

Overall, as we can see, dealing with both bankruptcy and divorce can be a troublesome task. Therefore, hiring an experienced lawyer to help you with this can prove to be a nice idea.

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