How Bankruptcy Will Help You In A Divorce

Denvil Crowe's picture

Many people divorce because of financial problems. In turn, many people file bankruptcy cases because of divorce. If you are saddled with a mountain of debt and your marriage is falling apart, filing a bankruptcy case may allow you, and your spouse if he or she participates, to basically delete and finalize a large burdensome financial chapter of your life so that you may re-enter single life with a fresh start.

Planning ahead may make both bankruptcy and divorce less complicated and more cost-effective. Because filing fees for bankruptcy cases are the same for individual and joint filings, filing a joint bankruptcy case with a spouse before a divorce may cut your fees in half.

Negotiating which debts should be assigned to each spouse in a divorce is typically a process that consumes substantial time and consequently increases legal fees. It is important to know that a divorce decree ordering one spouse to repay a particular debt does not relieve the liability of the other spouse to repay the creditor. Filing a bankruptcy case prior to divorce solves all of these problems.  

Many times, after the divorce, one spouse will file a bankruptcy case. In this situation, if the parties are on amicable terms, it may be advisable to inform the other spouse and recommend that he or she also file a bankruptcy case. Why? If the ex-spouse does not file bankruptcy, unlike the filing ex-spouse, he or she may be responsible for paying the debts of the marriage. Even if a divorce decree directs that an ex-spouse is liable for a debt, trying to collect will normally mean spending more money on legal fees. As a result, it often is in the best interest of both spouses to file bankruptcy and eliminate all combined debts before a divorce.   

Sadly, divorce breaks up entire families. But it also often burdens both spouses with debt that they carry into single life, often for many years. Bankruptcy is a sensible option to help divorcing couples find financial stability prior to re-entering single life. If you have any questions that you need immediately answered or if you are simply in need of assistance in completely reviewing and thoughtfully considering your options in the face of financial hardship in a divorce, Denvil Crowe, one of Tupelo's most qualified bankruptcy attorneys, can help you decide whether bankruptcy is your best option. Call 800-429-HELP (4357), email us at Contact@denvilcrowe.com or check us out online today to receive all of the assistance you need in solving the burden of excessive and unmanageable debt!

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