Going through a divorce is a difficult and emotionally draining process. When paired with bankruptcy, it can be even more of a challenge. Both divorce and bankruptcy involve a great deal of time, paperwork, and worry.
If you’d like to file for divorce and bankruptcy, you likely have many questions on your mind. We’ve compiled the guide below to help ease any stress you may be experiencing, and ensure you know all about bankruptcy and divorce in Ohio.
Contact Adrienne Hines at Kademenos, Wisehart, Hines, Dolyk & Wright Co. LPA for help with your divorce and bankruptcy cases. We will inform you of your legal options and ensure your rights are protected.
Reasons to File for Divorce After Bankruptcy
You may be wondering whether you should file for divorce before or after bankruptcy. The answer to this question depends on the specific circumstances of your case. However, if you are filing for Chapter 7 bankruptcy, which involves getting rid of your debts through discharge, it often makes more sense to file for divorce after filing for bankruptcy.
If you file for bankruptcy before you get divorced, it’ll be far less expensive than filing two separate bankruptcies after divorce. You’ll be able to benefit from one legal fee, one batch of paperwork, one Meeting of Creditors, and save a significant amount of money as a result.
Also, if you file for bankruptcy before divorce, you will no longer be responsible for any joint debt incurred during your marriage. In the event you file for bankruptcy after divorce, your liability may be relieved, but you may still be forced to pay your former spouse’s debt or reimburse them for it.
In addition, if you file for bankruptcy while you’re still married, you’ll find the process to be easier and not as stressful. After the Chapter 7 bankruptcy process ends in about 90 days, you’ll enjoy financial relief and be able to focus on improving your personal life via divorce.
Reasons to File for Divorce Before Bankruptcy
In Chapter 13 bankruptcy, there is a three to five-year repayment plan in which you will have to repay your debts. If you do not qualify for Chapter 7 bankruptcy because your income is too high, you may need to file for Chapter 13. As such, you may be better off filing for divorce before bankruptcy. This is particularly true if you plan on divorcing during the three to five-year time period.
Additionally, if you wish to file for Chapter 7 bankruptcy but you are unable to because you and your spouse have a combined income that’s too high, it may make sense to wait until you are divorced and in a lower income bracket so that you are eligible.
If you and your spouse are in a hostile relationship and you simply cannot wait to get divorced, filing for divorce first may be best for your safety and emotional well-being. Also, your spouse will need to provide necessary financial documents and go to court so if you think they will be incapable of doing so, it may be best to wait until after your divorce to go through the bankruptcy process.
Do You Have Questions About Bankruptcy and Divorce? Contact Us Today
Deciding whether to file for divorce before or after bankruptcy can lead to many consequences. Therefore, it’s important to consult divorce and bankruptcy lawyers to help with each process. Family lawyer and bankruptcy attorney Adrienne Hines of Kademenos, Wisehart, Hines, Dolyk & Wright Co. LPA is ready to help you. To schedule a free, initial evaluation of your case, contact us today at (419) 625-7770.