Trying to save your home from foreclosure while having to deal with nagging creditors can create a lot of stress and anxiety. In particular this true for married couples with credit problems. With 50% of Oklahoma marriages ending in divorce, it well-known that financial issues are a leading reason for divorce. In fact, many couples trying to address debt problems sometimes end up doing so in a Oklahoma Divorce Court. As such, a couple’s finances are something that must be dealt with during their divorce case. This requires the assistance of a Tulsa Oklahoma family law attorney who is also skillful in filing bankruptcy. The question I hear from clients is should I file for divorce before filing for bankruptcy or not.
Bankruptcy May Help:
Although filing for bankruptcy cannot address all pressing issues, it can make a divorce case a lot less painful. Surprisingly, it may be the most practical way to resolve your marital debt crisis. Before filing for divorce, Oklahoma couples may choose to jointly file for bankruptcy. This may save them about 50% of what it would cost each of them to file separately. Even better, a Chapter 7 bankruptcy (also known as liquidation bankruptcy), could wipe out most, if not all, of a marriage’s debt for couples that qualify for this form of bankruptcy. This, in turn, can help a couple resolve some of their more pressing and contentious financial issues before turning to divorce – ultimately making it run more smoothly.
Joint Filing Requires Cooperation:
Undoubtedly, a jointly filed bankruptcy action can only be effective if both parties are willing to cooperate with one another. In other words, a successful joint bankruptcy action is contingent upon each spouse being able to discuss their financial affairs together with the same bankruptcy attorney. In addition, for those who wish to file for bankruptcy after their divorce is finalized, it is preferable for them to consider Chapter 7, rather than Chapter 13 bankruptcy.
The reason being is that a Chapter 7 action usually takes less time to complete. Also, no repayment is often necessary for the dischargeable debts therein. Conversely, in a Chapter 13 action, each spouse must cooperate with one another to create a repayment plan that will be in effect for a certain time period. This may be challenging for divorcing couples, especially those who cannot get along from the get go.
Its Not Too Late To File Together:
Despite the above, you should not be too concerned should your spouse not wanting to jointly pursue a bankruptcy before filing for divorce. Specifically, a joint bankruptcy action, whether Chapter 7 or 13, can file prior to or during a divorce case. In some circumstances, people may not realize the benefits of jointly filing until their divorce case is already underway. This may influence their decision to hold off finalizing their divorce case until their bankruptcy action is over. With this in mind, it is important to speak with an experienced Oklahoma bankruptcy attorney. They help you to find out more about all your bankruptcy and divorce-related options.
Oklahoma Bankruptcy and Divorce Attorney:
If you are interested in filing for bankruptcy or divorce and want to learn more, call us today. Whether you should file for divorce before filing for bankruptcy or not we can help. Get the legal edge you need by getting good legal advice about bankruptcy and divorce.