Divorce and bankruptcy are two of the most stressful times in your life, and unfortunately, you might find yourself in a position where these two events either coincide, or follow each other. Divorce can cause people severe financial stress that ends with them declaring bankruptcy.
If you are considering bankruptcy and are also currently in the middle of a divorce, speak to a Colorado divorce lawyer for help. Whether you file for divorce or bankruptcy first can affect your financial future.
There is also the possibility of both of you filing for bankruptcy jointly before the divorce. There may be several advantages to this. If you file for divorce jointly as a couple, you end up saving in court costs, as well as attorney fees. You will have to pay the same amount of legal fees for an individual bankruptcy as well as for a joint bankruptcy, and will end up saving costs with a joint bankruptcy.
Depending on the kind of debt that you have as well as the state of the marriage and how quickly you want a divorce, you can choose among several types of bankruptcy options. Please speak with a financial professional about your situation.
If the two of you have a lot of debt, and the property division will also include marital debt division, then eliminating unsecured debt, like credit card debt and medical debt in a joint bankruptcy, will make it easy for you to divide your assets during a divorce.
These are complex issues, and there are several factors for you to consider before you decide whether to file for bankruptcy before or after the divorce, as well as the type of bankruptcy. Get legal help from a Colorado divorce attorney.