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Filing for Bankruptcy and Divorce Go Hand in Hand.

Filing for Bankruptcy and Divorce Go Hand in Hand.
"""It appears that bankruptcy and divorce rates are both on the rise today. Which came first, the hen or the egg? Or, did the divorce cause the bankruptcy, or did the bankruptcy cause the divorce? Clearly, based on the statistics, these two go together like peanut butter and jelly or bacon and eggs.

When viewed from both perspectives, divorce can lead to a bankruptcy petition. It can be challenging for a separated couple to maintain two households on the same income. There may be no choice but to file for bankruptcy and attempt to discharge the unsecured debt if all of the household's expenses must be split in addition to being paid individually. On the other hand, the tension of filing for bankruptcy causes many couples to blame each other for their financial difficulties. The tension of filing for bankruptcy is difficult for married couples. Some couples separate as a result of the bankruptcy.

Bankruptcy can be complicated by divorce. The divorce attorneys should collaborate with a bankruptcy attorney to attempt an equitable resolution of the financial issues. Filing for bankruptcy and eradicating the debt often aids divorce attorneys so that they do not have to battle over who will pay the debts. Eliminating community debts will make it easier for both parties to afford their separate households.

Since financial issues are frequently the cause of divorce, it is common for bankruptcy to be a factor in the dissolution of a marriage. Many couples question whether they should apply for bankruptcy before or after the divorce. A married couple can declare bankruptcy jointly even if they are not living together, but they will no longer be able to do so after their divorce. The former partners must now file two distinct bankruptcy petitions. Timing is crucial, so long as they can work together to complete the procedure. This can save money because only one filing fee and one bankruptcy attorney will be required. Due to the potential conflict of interest, some bankruptcy attorneys will not want to represent both parties if they are aware that a divorce is imminent.

Depending on the circumstances, filing bankruptcy separately may also have benefits for the couple. If both spouses are gainfully employed and earn too much income to qualify for Chapter 7 bankruptcy, waiting until they separate will reduce their household income and may improve their chances of qualifying. This could be a huge advantage for the divorced couple if all of their unsecured debts are discharged under Chapter 7, allowing them to genuinely start over after the bankruptcy and divorce.

Having marital problems and financial problems at the same time is not enjoyable and, in many cases, will result in a perfect tempest in which the only option is to file for divorce and bankruptcy. Due to the complexity of the combined cases, it is essential to counsel with both a bankruptcy attorney and a divorce attorney to ensure that your family's best interests are protected.""

" - https://www.affordablecebu.com/
 

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"Filing for Bankruptcy and Divorce Go Hand in Hand." was written by Mary under the Finance / Wealth category. It has been read 157 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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