Things That You must Know while Filing Personal Bankruptcy during Divorce

Divorce is undoubtedly a painful situation. Many times, the financial hardship that it causes results in personal bankruptcy. If it looks like the only option available to you, there are several things that you need to take into your careful consideration. The following information will help you make an informed decision if you should go for it right now or wait until a conclusion is reached in your divorce case.

Note down All Your Debts and Assets on Paper

The first thing that you have to do is to prepare a list of all the assets and properties that you own and the debts that you owe to different creditors. If you find that there is no way to pay off your debts with the kind of assets and income resources you have, bankruptcy filing may be the best option available to you.

Discuss Your Situation with Your Divorce Lawyer

Before you make a final decision in this regard, you must also discuss your situation with the lawyer who is handling your divorce case. If your lawyer is not aware of such things, he/she may not be able to take necessary actions, which may eventually make your divorce case much more complicated. On the other hand, when your divorce attorney knows about the possibility of a personal bankruptcy, they will handle everything properly with your soon-to-be ex-spouse.

Contact a Lawyer Who Specializes in Handling Bankruptcy

Your divorce attorney is not the right person to handle the legal aspects involved with the bankruptcy process. You need to contact an experienced lawyer who specializes in handling bankruptcy cases. It is also important for you to make sure that both these lawyers work together in order to help you deal with both the problems efficiently, ensuring a favorable (as much as possible) judgment in your favor.

The Proceedings in the Divorce Case is Going to Slow Down

When a divorce case and a case for personal bankruptcy run together, it is very much likely that the former will cause the process in the latter to slow down. This is mainly because the federal court usually takes precedence over the family court. It also means that no assets will be considered for the divorce case until a final resolution is reached in the bankruptcy court that will declare which assets are going to be exempted.

Alimony and Spousal Support do Not Come under Bankruptcy Discharge

It is also important for you to keep in mind that even if you are declared as bankrupt by the federal court, you will still be liable to pay for spousal support and alimony if the divorce court gives a judgment regarding that.

If both you and spouse have taken certain debts together, you will have to file the petition for personal bankruptcy with your spouse. Overall, if you keep in mind the above things, you will be in a position to make an informed decision regarding this specific situation.

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