Filing for Bankruptcy and Divorce
There are a number of situations that may lead an individual to fall into overwhelming debt, but one of the most difficult and complex of these situations is the process of seeking and obtaining a divorce. Often, two individuals who decide to end their marriage will be forced into bankruptcy by both the debts that accrued during their married relationship as well as those that come from legal fees related to the divorce proceedings.
Divorce is a difficult process to endure, but the addition of an immense financial burden will undoubtedly make this time in your life even more of a struggle. Fortunately, a professional bankruptcy attorney may be able to offer the help you need to make it through this complicated and arduous time in your life.
Important Factors to Consider
While filing for bankruptcy and divorce at the same time may be incredibly difficult for you, it could also be the most sensible option to deal with your situation. However, it is important to be aware of a few factors before making this major decision. For example, a few key pieces of information regarding bankruptcy and divorce are:
- You may still have to make payments on joint debts if you and your ex-spouse signed them together
- Bankruptcy cannot eliminate or reduce certain divorce debts
- You will still owe any child support and alimony you have been ordered to pay
- It is often necessary to divide property with your spouse before filing for bankruptcy
- It is possible to file for joint bankruptcy before filing for divorce
These are only a few of the issues that individuals may deal with when filing for bankruptcy and divorce simultaneously. To better navigate the complexities of this unique situation, you may want to consider enlisting the help of an experienced bankruptcy attorney.
While you may still be inclined to retain the services of your divorce attorney during this process, the legal team at Hong Law, PLC can offer specialized representation to individuals dealing with Chapter 7 and Chapter 13 bankruptcies. To speak to a Cedar Rapids bankruptcy attorney about how we can help alleviate some of your overwhelming financial stress, call our office at (319) 294-5853 today.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office