Divorce is never an easy process, and it can be complicated even further when financial troubles are thrown into the mix. If you and your spouse are considering divorce, you may be wondering how your marital debt will be divided. You may also wonder whether it'll help or harm your situation to file for personal bankruptcy before the proceedings are complete. Learn more about the division of debt to determine if it's time to hire a bankruptcy attorney.

How Marriage Debt Is Divided in Georgia

The first step in the division of debt is determining which ones are marital and which are separate. Most debts incurred during the marriage are considered marital, whether you or your spouse took them on individually or as a couple. Everything that's determined to be marital debt is subject to equitable distribution between the spouses, which means they're distributed fairly, but not always equally. However, depending on the judge's decision, credit card debt in a single person's name may not be divided.

When You Should File for Personal Bankruptcy

If you plan to file for Chapter 7 bankruptcy, doing so before your divorce can help you and your spouse discharge debt before separating. However, filing while you're still married may mean your income is too high to qualify for Chapter 7 personal bankruptcy. On the other hand, Chapter 13 bankruptcy lasts three to five years and can be affected by a divorce that happens within that timeframe, so it may be better to wait until after your split.

One benefit of filing for joint bankruptcy during your marriage is receiving double exemptions for your property and assets. You should also consider that filing after a divorce may not be easy if the relationship has become contemptuous. However, remember that each case is unique, which is why a personal bankruptcy attorney can help you determine the best course of action.

Get professional legal advice regarding personal bankruptcy by contacting Brian R. Cahn & Associates, LLC in Cartersville, GA. These talented attorneys have been serving the residents of Northwest Georgia, including Whitfield, Murray, Gordon, Bartow, and Paulding counties, for more than 20 years. They’ll take the time to analyze your individual case to help you make the best choices regarding your marital debt. Find out more about the practice online or call (770) 382-8900 to schedule a consultation.