EXPERIENCED CHERRY HILL, NJ ATTORNEY ADVISES DIVORCING CLIENTS ABOUT BANKRUPTCY
No one wants to accumulate enough debt to be forced into bankruptcy. Similarly, they get married, most people hope it’s forever. However, unfortunately, it’s not unusual when couples find themselves facing both of these situations simultaneously. Bankruptcy is all about money. And, money is often a major issue in the divorce process, as well.
Both areas of law are complex and cause a great amount of stress and frustration for both spouses. There is a lot of “he said, she said” and finger-pointing. It’s extremely difficult, and certainly not advisable, to go through bankruptcy and divorce at the same time without a compassionate, skilled lawyer who will protect your interests every step of the way. Contact Cherry Hill bankruptcy lawyer Joel R. Spivack, Esq. for a free consultation about your financial situation today.
LAWYER JOEL SPIVACK EXPLAINS HOW CAN BANKRUPTCY AND DIVORCE AFFECT EACH OTHER IN HADDONFIELD, PENNSAUKEN, VOORHEES AND SURROUNDING COMMUNITIES
While you may be facing both financial hardship and a crumbling marriage at the same time, bankruptcy and divorce generally cannot occur at the same time. One must taken precedence over the other, for legal purposes.
In most cases, it makes sense to file for bankruptcy before you file for divorce in New Jersey. This is true for several reasons:
- Bankruptcy courts treat filings differently for people who are single, married or divorced.
- Distribution of debts and assets is an important part of the divorce negotiation process. Depending on whether you file for Chapter 7 or Chapter 13 protection, the two of you may have far less to divide after bankruptcy.
- If you file for bankruptcy jointly, the two of you can file one case, thereby wiping out joint debts together. This is especially good if you have loans, such as car loans or mortgages, that you can no longer afford and want to be free of post divorce.
Therefore, it’s often a good idea to file for bankruptcy before filing for divorce. A Chapter 7 bankruptcy takes about 90 days. On the other hand, in a Chapter 13 bankruptcy filing, both spouses will have to take responsibility for the debt repayment plan. This form of bankruptcy protection could take several years to complete. You won’t have to wait until all of the debts are repaid, but waiting until your repayment plan has been approved may make your asset/debt-related divorce negotiations less complicated.
WHEN IS IT A GOOD IDEA TO FILE FOR DIVORCE BEFORE FILING FOR BANKRUPTCY IN NEW JERSEY?
There are some cases when filing for divorce before bankruptcy makes sense.
- If joint income precludes you from qualifying for Chapter 7 bankruptcy protection, you would be forced to file for the more complicated, lengthier Chapter 13 option. However, if you file as a divorced person, you may then be able to file for Chapter 7 and rid yourself of your own debts.
- You know what they say about “prior proper planning…” Your family lawyer can discuss the benefits of protecting some of your assets during divorce negotiations so that a bankruptcy trustee will not be able to take them during bankruptcy proceedings.
- If you are the person who will be paying child support and/or alimony, filing for divorce before bankruptcy may be helpful. You will know your financial obligations and can use this information during your bankruptcy to determine your future income.
If you live in Bellmawr, Collingswood, Gloucester Township or any of the surrounding towns, speak with bankruptcy lawyer Joel R. Spivack about your financial situation. He can best advise you how to proceed when you are looking to file for bankruptcy at the same time you are getting divorced.
Talk to a Skilled Cherry Hill, NJ Lawyer about Your Bankruptcy & Divorce Questions for Free
Divorce and bankruptcy – two activities that no one wants to be involved in. However, it’s not unusual when couples are facing both at the same time. These are complex areas of the law and you need a qualified lawyer to guide you through these processes in an effort to protect yourself today and in the long-term.
At some point, the divorce will be finalized and you will begin again. Similarly, you will be well on your way to a fresh financial start thanks to bankruptcy. Mistakes made during both the divorce and bankruptcy processes can affect you for a long time to come. Don’t go it alone. Contact the Law Offices of Joel R. Spivack as soon as possible for sound legal advice from someone who has helped counties residents of Camden, Gloucester and Burlington counties move on with their lives.