Getting divorced can be one of the most difficult things that a person ever goes through in their life. It’s often necessary to hire a divorce lawyer in these situations, but many people fail to recognize that hiring a bankruptcy attorney in Sacramento could also be a necessary task. Of course, most individuals would wonder why they’d need to worry about bankruptcy during their divorce; but when they don’t, they’re often left regretting their decision not to file before their divorce even went through.
Marital Debts and Bankruptcy
Before one can understand the necessity of hiring a Sacramento bankruptcy attorney, they must first recognize the debts that they’ll be facing after a divorce. Regardless of which spouse drove the new car or used the credit card more often, all debt taken on during a marriage is the responsibility of both parties.
During a divorce, a judge will divide both the assets and the debts from a marriage. Unfortunately, creditors aren’t bound by a couple’s divorce settlement. This means both divorcing parties may realize that they’re still subject to creditor harassment. The real reason it’s a good idea to file for bankruptcy before a divorce, however, lies all in the details.
Declaring Bankruptcy before Divorce
A person may think that they’ll be free and clear of their spouse’s credit card debt after a divorce, but in reality, it will follow them. This is one reason why, if the couple’s finances are looking bad, it’s important to file for bankruptcy before the divorce. This will allow the couple, whether through Chapter 13 or Chapter 7 bankruptcy discharge, to get rid of some of their debts before the divorce and thus ensure an equitable separation.
What happens if Bankruptcy is filed after Divorce?
If a couple is facing financial difficulties but doesn’t opt to file for bankruptcy before their divorce, both parties are left at the whim of their former spouse. If one person chooses to file bankruptcy after the divorce, for instance, this will leave the entirety of the debt collected during marriage on the spouse who didn’t file.
In the end, a person filing bankruptcy can cause wage garnishments, auto repossessions, and even foreclosures on their former spouse’s new home if filed after a divorce. Sadly, this will often drive the other individual into bankruptcy as well. This is why it’s so important to get the entire mess out of the way before going any further.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791