Declaring Bankruptcy During Divorce In Florida
According to the official statistics, one of the most common reasons for divorce is an argument over money. When money gets tight, all kinds of relationship problems can arise, and sometimes things spiral out of control – towards divorce. In addition, divorce can put immediate strain on a spouse’s finances – especially when you consider property division, child support, alimony, and other obligations. Because of these factors, it should come as no surprise that many spouses choose to declare bankruptcy before, during, or immediately after divorce. But how will this affect your divorce?
The truth is that each divorce is slightly different, and you will obtain personalized legal advice if you wish to approach your situation in the most effective manner possible. Internet research will only get you so far, and a face-to-face consultation with a qualified family law attorney in Florida is necessary to move forward in a confident manner. Book your consultation as soon as possible to develop an effective action plan.
File for Bankruptcy First
Generally speaking, it’s a good idea to file for bankruptcy and resolve this legal matter before filing for divorce. If you allow these two processes to overlap, it may cause additional issues, resulting in a drawn-out divorce that lasts much longer than necessary. Of course, if your spouse blindsides you and files for divorce completely out of the blue, you won’t really have any control over which process comes first.
What Happens to Debts?
One of the main benefits of filing for bankruptcy before a divorce is that joint debts can be canceled. If each spouse declares bankruptcy separately, they can handle their own debts. For example, if one spouse has $100,000 in unpaid credit card bills, the other spouse would not be required to pay half of this amount in a later divorce.
How Does Bankruptcy Affect Property Division
Declaring bankruptcy puts an automatic stay on your property, preventing property division from moving forward in a divorce. That being said, the exact effects of a bankruptcy on your divorce will depend on what type of bankruptcy you choose. Chapter 7 bankruptcy can have a drastically different effect on your divorce compared to Chapter 13 bankruptcy. Chapter 7 bankruptcy is typically recommended for quick divorces, as it can eliminate all dischargeable debt within three to six months.
You Can’t Get Rid of ALL Debt with a Bankruptcy
Remember, bankruptcy doesn’t have any effect on child support, alimony, or child custody. You will have to pay child custody regardless of whether you declare bankruptcy prior to the divorce.
Enlist the Help of a Qualified Attorney Today
For help from a skilled Orlando family law attorney, look no further than Steve Marsee, P.A. Over the years, we have helped numerous spouses approach their divorces in the best way possible. We know that financial issues can easily arise when you approach divorce, and it’s important to deal with these situations confidently and efficiently. With our help, you can explore your legal options during a consultation. Reach out today to get started.