Many divorced individuals seek the financial benefits of filing for bankruptcy. When you are considering filing for both bankruptcy and divorce, there are a few things to know before making a decision on which to file first.
Each situation is different. Other than avoiding filing for both bankruptcy and divorce at the same time, there is no hard and fast rule on which to file for first. You can speak to a Chapter 7 lawyer Orlando FL to get more details on which may be more beneficial for you. A hostile relationship may benefit from divorce before bankruptcy. However, a couple on amicable terms may be able to share the legal fees and divorce after the bankruptcy is complete.
Regardless of when you file, not all debts are available for discharge during bankruptcy. If you plan to wait until after the divorce to file, remember that you cannot discharge alimony and child support back payments or any associated attorney fees. Student loans, government agency fines or court penalties and fines. These debts remain after the other debts are negotiated.
Chapter 7 is the ideal bankruptcy to file if you file prior to divorce. The process of filing for Chapter 7 takes less time to complete than other forms of bankruptcy. You do still have to meet the means test to qualify, but you can expect to continue or file for divorce within six months of filing for bankruptcy.
While it may seem convenient to use the same attorney for your divorce and bankruptcy, that is generally not a good idea. For one, most attorneys specialize in a particular area of law. Divorce falls under family law which is different than bankruptcy law. If your spouse and you both file for bankruptcy prior to divorce, you want to acquire your own legal counsel to handle the divorce.