What You Should Know About Bankruptcy and Divorce
Unfortunately, it is not uncommon for these two overwhelming and devastating situations to go hand in hand. Money is one of the top things couples fight about and divorce is one of the leading causes for filing bankruptcy. One of the biggest mistakes you can make is filing divorce and personal bankruptcy simultaneously. If you are considering both bankruptcy and divorce, it is highly recommended that you hire a bankruptcy attorney Oceanside residents rely on. They will help you decide which one to file first and achieve financial stability.
Take a look at several factors you should consider when determining whether to declare bankruptcy before or after a divorce.
Don’t file for bankruptcy and divorce at the same time
For the sake of simplicity, do not file divorce and bankruptcy at the same time. The bankruptcy court will require financial information about your income, assets, debts, etc. It would be difficult to determine what belongs to you if you are going through a divorce.
Also, once you file for bankruptcy, an automatic stay is put into place. This would make it impossible for the family court to divide the property between you and your spouse, resulting in a longer divorce process. Moreover, waiting on the outcome of the bankruptcy to be able to get a divorce can leave you feeling emotionally exhausted.
Aiming for a quick divorce? File Chapter 7 bankruptcy first
If you and your partner are on amicable terms, it’s best that you file for bankruptcy before going through with your divorce. If you and your spouse own property together, filing personal bankruptcy in Oceanside first will possibly protect you both from paying joint debts. It will also allow you to share filing fees and simplify the division of assets in divorce.
Chapter 7 bankruptcy will give you the opportunity to complete the bankruptcy process fast, within four to six months from the moment you file your bankruptcy case. On the other hand, Chapter 13 bankruptcy involves a repayment plan that takes three to five years to complete. Therefore, if you want to move on to a divorce as soon as possible, Chapter 7 is a better option.
What if you want to file for divorce during Chapter 13 bankruptcy?
In case you want to apply for a divorce while in a joint Chapter 13 bankruptcy, you have two possibilities: splitting your case or canceling your bankruptcy file.
If you choose to restructure and divide the plan into two cases, you and your spouse will get to deal with the bankruptcy separately from each other. In case you stop the repayment plan, you will keep being responsible for all debts that you and your partner have assumed. Seek legal counsel in Oceanside to make sure that you choose the best course of action.
Not all debts can be eliminated through bankruptcy
If you choose Chapter 7 when filing personal bankruptcy, keep in mind that not all debts can be wiped out. Under Chapter 7, non-dischargeable debts include student loans, alimony, criminal and civil fines, child support, attorney fees for child custody or support cases. There is a myriad of regulations and rules that you should be well aware of. An experienced bankruptcy attorney will inform you of the dischargeability of any debt you owe and see to it that you follow all the legal procedures precisely.
Filing personal bankruptcy in Oceanside? Contact #1 bankruptcy attorney in San Diego
If you are thinking about filing personal bankruptcy in Oceanside, feel free to contact the San Diego and Riverside County bankruptcy law firm of Chang & Diamond, APC. Our experienced and skilled bankruptcy lawyers will help you understand the steps involved in both Chapter 13 and Chapter 7 bankruptcy, make the right decisions and follow the filing procedures to the letter.
Bankruptcy is a complex area of the law and even the slightest error or misunderstanding can jeopardize your case. Thus, don’t hesitate to call (619) 312-4900 or (800) 718-8118 – today!