Financial situations are often the cause of many marital problems, but for certain couples, claiming personal bankruptcy before divorcing may help them get their financial life back in order. For some there remains a poor stigma about personal bankruptcy, but if financial issues are part of the dissention in their partnership, bankruptcy can certainly make dividing up any marriage assets simpler.
Generally, before a couple goes through their divorce, they'll sit with their legal representatives to ascertain how any assets, in addition to liabilities are separated. Based on the kind of liabilities they've accrued over their marriage, filing for bankruptcy, as a couple, can lessen the quantity of liability one or both partners will shoulder throughout the proceedings. Nevertheless, if one partner has far more individual liability than the other, that individual may consider bankruptcy alone.
That's where it can get sticky, as the individual bankruptcy court may think bankruptcy by one of the partners is only an effort to hide assets that may otherwise be subject to the division of any assets. Since child support, spousal alimony and many other financial responsibilities can't be cleared during personal bankruptcy, couples find it much easier to go through with their bankruptcy before they declare divorce.
Frequently, when bankruptcy is finished, the couple will end up with fewer assets to split during the actual divorce. Also, some lenders look at the bankruptcy and up coming divorce as mitigating situations when one or the other applies for a financial loan. That is not to say credit will likely be readily extended, as the individual bankruptcy will place a mark on the two party's credit scores, however, some will be a little more understanding regarding the cause of bankruptcy.
Since credit reporting agencies are required to maintain separate credit history files on both spouses, if one declares bankruptcy, it may possibly not affect the other's credit worthiness that drastically. Additionally, a personal bankruptcy attorney can answer most queries about filing prior to a divorce, but Chapter 7 might not be a possibility if their earnings are high enough to support payments for a Chapter 13 filing. A pending divorce and the possibility of reduced assets are not usually taken into account for either kind of bankruptcy filing.
In the event you and your wife or husband are in financial trouble and are considering bankruptcy before you divorce, it's critical to seek help from a qualified bankruptcy legal professional. A bankruptcy law firm can help you understand what your best next steps are and help safeguard you from making the wrong move, in the incorrect order. To give yourself the best chance for enhancing your financial situation, choose an experienced bankruptcy lawyer before filing for divorce or individual bankruptcy.
Generally, before a couple goes through their divorce, they'll sit with their legal representatives to ascertain how any assets, in addition to liabilities are separated. Based on the kind of liabilities they've accrued over their marriage, filing for bankruptcy, as a couple, can lessen the quantity of liability one or both partners will shoulder throughout the proceedings. Nevertheless, if one partner has far more individual liability than the other, that individual may consider bankruptcy alone.
That's where it can get sticky, as the individual bankruptcy court may think bankruptcy by one of the partners is only an effort to hide assets that may otherwise be subject to the division of any assets. Since child support, spousal alimony and many other financial responsibilities can't be cleared during personal bankruptcy, couples find it much easier to go through with their bankruptcy before they declare divorce.
Frequently, when bankruptcy is finished, the couple will end up with fewer assets to split during the actual divorce. Also, some lenders look at the bankruptcy and up coming divorce as mitigating situations when one or the other applies for a financial loan. That is not to say credit will likely be readily extended, as the individual bankruptcy will place a mark on the two party's credit scores, however, some will be a little more understanding regarding the cause of bankruptcy.
Since credit reporting agencies are required to maintain separate credit history files on both spouses, if one declares bankruptcy, it may possibly not affect the other's credit worthiness that drastically. Additionally, a personal bankruptcy attorney can answer most queries about filing prior to a divorce, but Chapter 7 might not be a possibility if their earnings are high enough to support payments for a Chapter 13 filing. A pending divorce and the possibility of reduced assets are not usually taken into account for either kind of bankruptcy filing.
In the event you and your wife or husband are in financial trouble and are considering bankruptcy before you divorce, it's critical to seek help from a qualified bankruptcy legal professional. A bankruptcy law firm can help you understand what your best next steps are and help safeguard you from making the wrong move, in the incorrect order. To give yourself the best chance for enhancing your financial situation, choose an experienced bankruptcy lawyer before filing for divorce or individual bankruptcy.
Learn more about bankruptcy filing in Oregon and Washington from the Salem Oregon bankruptcy attorneys of Northwest Debt Relief Law Firm. Whether chapter 7 bankruptcy or Chapter 13 is right for you, Northwest Debt Relief Law Firm can help you get a fresh start and get your personal finances back on track.
{ 0 comments... read them below or add one }
Post a Comment