A divorce can be tricky enough on its own, but it can get very complicated when it is combined with bankruptcy. If you find yourself in this situation, make sure that you contact a bankruptcy attorney who can help you sort out all of the details. There are a number of important things to consider if you think you will be filing for divorce and bankruptcy at the same time.
First of all, doing both things at once can make the process take much longer. The divorce court needs to be able to make a decision about what to do with your property, such as houses that you own or even money that you have in the bank. If the bankruptcy court is still trying to sort out what assets you have and what ones are going to be liquidated, the divorce court cannot make this ruling. The process will grind to a halt until the bankruptcy proceedings are finished.
Another important thing to talk to the bankruptcy attorney about is whether or not you are going to be responsible for debts that the two of you had together. For example, perhaps both of you put your names on the loan to buy your car. The divorce court may then order you to pay the entire debt. If you do not, you could be taken back to court. If your spouse has to make the payments, the court may order you to pay them back. Of course, some of this debt could be cancelled out by the bankruptcy declaration, so you need to find out what will be erased and what will remain, as not all debts can be cancelled.
Finally, you and the bankruptcy attorney need to discuss child support payments. Did you know that you will not be granted Chapter 13 bankruptcy if you have failed to make payments in the past and you still owe your spouse money? Even if you do declare bankruptcy, you still have to make these payments. It is important to factor them into your monthly budget, no matter what you are doing with the rest of your financial obligations.