If you and your spouse are facing financial difficulties and you're filing for divorce, you might want to consider filing for bankruptcy protection first. There are many benefits to filing for bankruptcy before you file for divorce. Here are just four of the reasons why you and your spouse should seek bankruptcy protection now that you're ready to divorce.
No Need to File Two Cases
If you and your spouse are drowning in debt, you're going to take that debt with you. If you both decide to file for bankruptcy after the divorce, you're going to be paying for two separate actions. However, if you file for bankruptcy together, you'll be able to pay for one action, which will save you time and money. Not only that, but since all the documentation for your debt is still located in your marital house, neither of you will need to go searching for the paperwork once you're ready to file for bankruptcy.
Increases the Exemptions
When you file for bankruptcy, you're entitled to specific exemptions for some of your assets. If you file after your divorce, you'll be entitled to the exemptions allowable for a single person. However, if you file for bankruptcy while you and your spouse are still married, you'll both be able to take exemptions for your property, which means you'll be able to hold on to more of your assets.
Eliminates Joint Debt
When you file for divorce, your settlement agreement will include the division of assets and debts. That means you'll both walk away with an even distribution of property and bills to pay. If you and your spouse want to avoid being left with bills to pay, use bankruptcy to eliminate the joint debt. When you file for divorce at the same time, all of your eligible debt will be discharged, meaning you won't have any joint debt to divide.
Alleviates Financial Stress
Debt can take a toll on a marriage. If you and your spouse have been fighting over debt and those fights have led to the demise of your marriage, you owe it to yourselves to file for bankruptcy and alleviate the financial stress. You'll be free of the financial worries that are hanging over your heads, and you might find out that divorce is no longer an option. If you do continue with the divorce, you'll do so without the burden of the marital debts.
For help with filing for bankruptcy, contact an attorney in your area.