BANRUPTCY OR DIVORCE WHAT COMES FIRST

12 Aug BANRUPTCY OR DIVORCE WHAT COMES FIRST

What come first, the chicken or the egg? The question may be what comes first, Bankruptcy or Divorce? Frankly these are two things that can go hand in hand just like frank and beans or macaroni and cheese.
Seriously divorce is one of the main reason behind a bankruptcy filing. You previously had a family living under one roof with one or two incomes and now you have the same family broken up, living under two roofs and the income has not changed. The divorce then lends one or both parties no choice but to file bankruptcy.

I am often asked should I get divorced first or should I file bankruptcy first. I suggest that the individual needs to look at the whole financial picture. It would be best if the bankruptcy and divorce lawyers worked together. Of course that often frightens people because now we have four lawyers.

If the situation is approached in the right manner many dollars and headaches can be saved in the future. Many times couples end up returning time and time again to the divorce court to battle issues that could and should have been resolved in advance. Many of these issues with proper planning could have been resolved upfront with the proper knowledge. Many unresolved issues wind up in litigation in the bankruptcy court. Often times a bankruptcy could have eliminated the fights and the discussion over who pays the bills in the first place, if considered early enough. Without not worrying about who pays for what, can also leave more income for each of the parties to provide for the new households.

When facing this situation it is best to make a chicken omelet which means you should probably consult both a bankruptcy lawyer and a divorce lawyer.

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