Bankruptcy And Divorce: A Common Overlap

Divorce is a major life event that comes with financial ramifications. In fact, financial struggles are a leading factor in contributing to divorce. As a result, many couples who are facing divorce or separation also face the decision of whether to file bankruptcy.

The Question Of Timing

Timing makes a difference when it comes to bankruptcy and divorce. For some divorcing couples — for example, those with joint debts who are on good terms — it may make sense to file joint bankruptcy before the divorce is finalized. Getting rid of eligible debts will make it easier to divide your property and financial resources. Likewise, you may benefit from filing bankruptcy before even filing for divorce.

For most couples, however, financial struggles reach a peak after divorce. The transition from one household to two can make it difficult to make ends meet, especially if you also have the burdens of alimony and child support. Credit card debt can quickly spiral out of control. At this point, bankruptcy may be a lifeline.

Put Financial Worries Behind You

At Wootton & Wootton, P.C., we understand the financial and emotional struggles that go along with divorce. As bankruptcy lawyers, our goal is to help you get out of debt and put those financial worries behind you.

Planning ahead is critical when it comes to bankruptcy and divorce. By sitting down with one of our attorneys, you can determine when is the best time to pursue bankruptcy — before, during or after divorce. We will work with you to tailor an approach that best fits your needs.

Get started with a free initial consultation by calling our offices in Durham or Henderson, North Carolina: 919-794-8660.