Financial woes can put tremendous pressure on a marriage. In fact, money problems are among the most commonly cited reasons for a divorce.
When financial problems get out of hand, your best option may be to pursue bankruptcy relief. Deciding whether to file for bankruptcy, and when to do so, involves many factors. You should seek the advice of an experienced lawyer to help you tackle your financial situation head-on.
The attorneys at The Turnaround Team have assisted hundreds of people get a fresh start in bankruptcy. Our Arizona bankruptcy attorneys can help you restore your financial health and start over with a clean slate. If you are considering divorce, are already engaged in the divorce process, or find yourself struggling to make ends meet following a divorce, we can help you.
Bad things happen to good people. Let’s turn it around.
– Brian M. Blum, Managing Attorney
The Timing of Divorce and Bankruptcy
Bankruptcy is a powerful tool for solving money problems. It has the power to discharge (eliminate) many types of debt, including credit card debt. It does not shield you from all financial obligations, however. Child support, alimony payments, spousal maintenance and other domestic support obligations cannot be discharged in bankruptcy. If you wait to file for bankruptcy until after the divorce, you should know that these financial obligations will continue.Get a Free Bankruptcy Consultation
Depending on your situation, it may be best for you to file for bankruptcy along with your spouse before you complete a divorce. Filing one bankruptcy to resolve the debt problems of the marriage can leave you in a better position than waiting.
That said, waiting to get a divorce could put you in a difficult position and negatively impact your rights once the marriage is over. Our team can help you understand the potential risks and benefits of either approach. We can help you make the right decisions to protect your interests.
Eligibility for Bankruptcy
People with real financial difficulties are generally eligible for some form of bankruptcy. But a divorce can impact your ability to pursue certain types of bankruptcy.
Chapter 7 bankruptcy requires that your income fall below a certain threshold or that your debts be of a certain type. While married, your income is the joint income of both you and your spouse. After a divorce, it is your income alone. Completing your divorce before filing could open up the possibility of filing under Chapter 7. Whether that is right for you is something you need to discuss with your attorney.
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The combination of marital and financial difficulties can be overwhelming. With the right advice, you can take control of your life. Contact our bankruptcy attorneys online to discuss your concerns about bankruptcy and divorce. You can also reach us at (480) 420-1999.