Money problems are a common reason that many couples today decide to get a divorce. When you and your spouse share significant debt, figuring out whether to file bankruptcy together or not can take some negotiation. If you are interested in filing for bankruptcy but your spouse is not , you will have to divide your debt and go through your divorce process first. You can file bankruptcy before you file for divorce, during a divorce proceeding, or after. It is generally not a good idea to complicate the divorce process by filing bankruptcy in the middle of it. Dividing debt when you are going to be the one filing for bankruptcy can have a big impact on your financial future.
Know What You Can't Discharge
There are certain debts that can't be discharged in a bankruptcy. If you owe student loan debt or you owe money to the Internal Revenue Service, you can't get out of paying those debts back through a bankruptcy. You also can't discharge money you owe in back child support. If you have any of these marital debts and your ex isn't going to file for bankruptcy, it is going to help you if you can be responsible for the debt you can write off.
Marital Debt That Can Be Discharged in Bankruptcy
If your ex is reasonable, you can ask to take responsibility for the marital debt that can be discharged in a bankruptcy. Credit card debt and other unsecured loans can be discharged, giving you a chance at building your financial future up again. If both of you are going to file for bankruptcy when the divorce is over, you will probably need to take over some of the secured debt as well as the unsecured debt.
Negotiate Your Debt Division
If you have marital assets, such as a house, you can try to negotiate to take on more of the unsecured debt in return for allowing your ex to remain in the marital home. As long as the mortgage gets paid, it does not have to become part of a bankruptcy filing. Know what you can negotiate with so that you can leave your marriage with as little debt as possible.
Filing for bankruptcy can give you the break you need to get out of serious debt. Move forward with your life after a divorce by working with a bankruptcy law firm.
Share30 September 2019
Filing for bankruptcy has a tendency to make people feel ashamed and stressed out, and can turn into a big source of depression if not handled properly. As a counselor for couples and families, I have worked with various families throughout the years who have had to go through bankruptcy. And during this time, I have seen firsthand how, with the right mindset, going through bankruptcy can make people stronger in their financial lives and careers. I started this blog to provide information about the right things to do and the things that should be avoided while going through bankruptcy to minimize stress and maximize potential once the process is over. If you have any questions or concerns, hopefully they can be addressed on these pages.