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Bankruptcy Help For Everyday People

How individuals can deal with bankruptcy and divorce

| Oct 7, 2020 | Chapter 13 Bankruptcy |

While getting a divorce or filing for bankruptcy in North Carolina can be stressful, dealing with both issues at the same time can be overwhelming. Fortunately, with a little planning, there are steps that individuals can take to make the process easier.

How can people file for divorce and bankruptcy at the same time?

Technically, it’s virtually impossible to file for bankruptcy and divorce at the same time. If one case is filed, the court will usually suspend the other case until they can deal with it properly. However, there are some cases where an individual might wish to file for bankruptcy before getting a divorce.

If a couple has a lot of debt, an individual might wish to file for bankruptcy before filing for a divorce. This might cancel some of the debts and reduce the amount of time that is spent dividing up the debts during the divorce. Additionally, some states allow couples to keep more of their assets if they file for bankruptcy instead of doing it individually after they’re divorced. Filing for bankruptcy before the divorce can also reduce court time and legal fees.

Where can an individual find assistance with bankruptcy and divorce?

If an individual is trying to juggle filing for bankruptcy and divorcing their spouse at the same time, they might wish to speak with an attorney. An attorney may be able to help them decide whether they should file for bankruptcy now or wait until they’re divorced to get the best possible financial outcome.

By working with an attorney, the individual may be able to navigate the bankruptcy process and figure out which form of bankruptcy is best for their situation. The attorney might also help with the divorce proceedings and assist in matters of property division and child custody.