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Financial troubles can place a great deal of stress on a relationship. As such, bankruptcy and divorce frequently go hand-in-hand. If you are considering filing bankruptcy and ending your marriage at the same time, you should seek the advice of an experienced lawyer. They can help you decide the most effective way to achieve debt relief and move on from your spouse. Here is what you need to know to handle both of these issues successfully.

A Guide to Filing Both Bankruptcy & Divorce 

Which to File First 

The timing of bankruptcy and divorce is important to consider. It’s generally not recommended that you file for both simultaneously, as this will only make matters more complicated. However, which you file first will depend on your specific situation. In some cases, it’s best to file a joint bankruptcy before getting divorced. This is generally the less expensive option, and it will allow you to discharge all qualifying joint debts. In turn, dividing your property will be much easier. On the other hand, your lawyer may recommend that you file for divorce first if your income as a couple makes you ineligible to file for a Chapter 7 bankruptcy.                                     

Chapter 7 vs. Chapter 13

lawyerCouples have the option to file for either a Chapter 7 or Chapter 13 bankruptcy. Chapter 7 typically takes less time to complete and allows unsecured debts to be fully eliminated. The disadvantage is that you may have to hand some of your property over to the bankruptcy trustee to pay back your creditors. In a Chapter 13 bankruptcy, you get to keep your property but must continue paying back some or all of your debt in accordance with a repayment plan that lasts three to five years. Often, couples aren’t in a position where they can wait that long to get divorced. Which type of bankruptcy is right for you is something a lawyer can help you identify.

 

Dealing with this combination of marital and financial problems can be overwhelming. When you work with a lawyer from Knochel Law Offices, P.C., they’ll provide the knowledge and resources necessary to take back control of these areas of your life. They have been representing residents throughout the Tri-State area of Arizona, Nevada, and California for more than three decades and are qualified to handle both divorce and bankruptcy cases. To learn more about the processes involved in pursuing debt relief and terminating a marriage, call (928) 444-1000, or visit their website.               

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