What comes first, divorce or bankruptcy?
One of the main reasons that Florida couples file for divorce is money problems. Divorce is not a fix-all for financial struggles, but can actually bring a host of money-related problems. For this reason, a person considering divorce may also consider the benefits of seeking bankruptcy protection. If you are already struggling with finances, filing for bankruptcy first can be helpful.
Not only will bankruptcy allow you to confront a significant amount of your debt before you move forward with the divorce process, it may help you salvage your financial future. Choosing to file bankruptcy is a very important decision, one that you should not take lightly. If overwhelmed by debt, you may find it beneficial to learn about your options regarding bankruptcy protection.
Chapter 7 bankruptcy before you divorce?
Few people consider the option of filing for bankruptcy before they file for divorce. If you are eligible for Chapter 7 bankruptcy, this could be a beneficial step for you. Through this particular chapter of bankruptcy, also known as liquidation bankruptcy, you will be able to discharge the following types of eligible debts:
- Credit card debt
- Medical debt
- Other types of unsecured debt
While under the protection of bankruptcy, you will also enjoy the benefits of the automatic stay. This halts all creditor contact and collections actions that may be underway against you. This includes repossession efforts, wage garnishment and harassing phone calls.
It can be helpful to go through this process before filing for divorce. By eliminating unnecessary debt, you may find that the divorce process actually moves faster and with fewer money-related disputes. When a couple must equitably divide large amounts of marital debt in a divorce, it can lengthen the process and add a certain amount of stress to all property division matters.
The necessity of experienced legal guidance
The bankruptcy process can be complex. It may be helpful to secure experienced legal guidance in order to ensure the correct completion of all forms and that you receive all of the exemptions for which you are eligible. A good outcome to your bankruptcy case could give you security and peace of mind as you move forward with the divorce process.
