3 Things To Consider When You Face Both Divorce and Bankruptcy

In the United States, more than a third of marriages end due to financial strains. For this reason, it may come as little surprise that many people face the legal hurdles of bankruptcy and divorce at the same time. If you are in this situation, you probably have questions. Here are three things to think about when looking for a divorce attorney Jefferson County TX.

  1. Sometimes, It Makes Sense to File For Divorce First

Depending on your income, filing for divorce first can be ideal if you currently make too much money to qualify for Chapter 7 bankruptcy. When two people have jobs in the same household, it can increase the chances of income being above the limits set for Chapter 7 qualifications. After a divorce, only your income will count toward your earnings, so it is more likely this form of bankruptcy will be an option.

  1. Sometimes, It Makes Sense to File For Bankruptcy First

On the other hand, there are times when it makes more sense to file for bankruptcy first. For example, one of the biggest benefits of going this route is the elimination of shared marital debts you and your spouse have acquired during the marriage. If the court discharges your bankruptcy before you file for divorce, you will not have to worry about dividing these assets.

  1. Financial History Does Not Necessarily Separate 

Even though divorce is one of the most official signs of separation, your shared marital credit history can still follow you for several years following a divorce or a bankruptcy discharge. While this will not last forever, it is important to keep in mind so you do not face any surprises. Additionally, if you file for Chapter 13, you may both be responsible for future payments.

Financial difficulties and divorces often go hand and hand. While there is not anything pleasant about these situations, understanding them can make life less stressful.

 

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