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When going through a divorce, one of your biggest concerns is how to relieve yourself of the debts incurred during your marriage. Should you file for bankruptcy before or after your divorce? Our Colorado bankruptcy team of lawyers often hears this question from divorcing couples. Our Colorado bankruptcy attorneys discuss what divorcing couples need to consider when seeking to relieve debts through bankruptcy and why it may be beneficial to settle matters before the divorce.
How Can Bankruptcy and Divorce Affect Each Other?
There are a few key ways bankruptcy and divorce can affect each other. For example, if you file for bankruptcy before your divorce is finalized, your joint debts with your spouse will be discharged. However, if you wait to file for bankruptcy until after your divorce is finalized, you will still be responsible for any joint debts with your spouse.
Another way that bankruptcy and divorce can affect each other is in the property division process. If you file for bankruptcy before your divorce, any joint property with your spouse will be protected from creditors. However, if you wait to file for bankruptcy until after your divorce, any joint property that you have with your spouse may be subject to seizure by creditors.
Filing for Bankruptcy Before Divorce
There are a few benefits to filing for bankruptcy before divorce. One benefit is that you will only have to pay the bankruptcy filing fee once. If you wait to file for bankruptcy until after your divorce, you will have to pay the bankruptcy filing fee twice - once for each spouse. Another benefit of filing for bankruptcy before divorce is simplifying the property division process. If all of your debts are discharged in bankruptcy, there will be no need to divide up your debt in the property division process.
One downside to filing for bankruptcy before divorce is that you may have to wait longer to receive a discharge of your debts. This is because the bankruptcy court will require you to list all of your creditors - including your spouse - on your bankruptcy schedules. If you wait to file for bankruptcy until after your divorce, you will only have to list your creditors - not your spouse's creditors.
Filing for Bankruptcy After Divorce
While there are some advantages to filing for bankruptcy before divorce, there are also some advantages to filing for bankruptcy after divorce. One of the main advantages of filing for bankruptcy after divorce is that it can help you discharge any debts incurred during your marriage.
Another advantage of filing for bankruptcy after divorce is that it can help protect your property. If you file for bankruptcy after your divorce is finalized, any joint property that you have with your spouse will be protected from creditors.
A third advantage of filing for bankruptcy after divorce is that it can simplify the property division process.
No matter what route you decide to take, consulting with a seasoned bankruptcy team is highly recommended to assess your situation and guide you through the process.
Let Our Experienced Bankruptcy Attorneys Help You
To answer the question in short: filing bankruptcy after divorce has advantages, but filing before is simpler. Our Colorado bankruptcy team of lawyers can help if you consider filing for bankruptcy. We can help you understand the pros and cons of filing for bankruptcy before or after your divorce and help you navigate the bankruptcy process. Contact us today to schedule a consultation.
If you have questions about how bankruptcy can help you, don't hesitate to contact us today through our website or give us a call at (303) 536-5124 to schedule a consultation.