Divorce and Bankruptcy
Financial stress is the number one burden on the success or failure of a marriage. Often people find themselves facing both financial ruin and separation from their spouse. If you are having marital and financial difficulties and feel bankruptcy and divorce are your best options, you may want to consider the timing of both legal actions.
Bankruptcy And Divorce Simultaneously
Before filing either of the cases, you must know that when you file bankruptcy in the court, the court offers an automatic stay. The stay ensures that none of your creditors ask you for money until the case has been closed. Typically, it freezes your assets to evaluate the properties or money you owe as debt and how your assets can compensate them. Through the whole bankruptcy process, this hold will remain active.
So, if you file divorce simultaneously, you might not be able to access your money or assets due to an automatic stay. Due to this, the family court will not be able to divide your assets, and the divorce case can take too much time to complete this way.
Know Whether Bankruptcy Should Be First Or Divorce
It makes sense to consider filing bankruptcy before the divorce. Bankruptcy leads to wise knowledge about the assets and debts, whether you and your spouse (who is going to be your ex-partner soon) share the joint accounts or properties. With this, the division will become less painful, leading to your monetary benefits after filing the divorce.
If one spouse files bankruptcy without the other, the other spouse may be liable for all of their joint debts. If this happens to you, you may want to file bankruptcy on your own to eliminate the debt your ex left you responsible for.
Contact an Elk Grove bankruptcy attorney to get the best possible outcome for a tough situation for your bankruptcy and divorce.