DuPage County Attorneys Help Clients Deal with Bankruptcy During Divorce
In today's financial climate, bankruptcy and divorce seem to be inextricably linked. Whether the financial stress ultimately caused the marriage to crumble, or the loss of the couple's financial strength through divorce led to bankruptcy, this is an issue that is becoming more and more common for couples who are going through the divorce process.
At Andrew Cores Family Law Group, our attorneys have extensive experience guiding clients through the most troubling times in their lives. Even if divorce is the best possible solution for your future, you still face emotional and financial challenges. Do not hesitate to schedule a free consultation with one of our knowledgeable lawyers to discuss your unique situation.
Timing Is Key
Most often, clients are unsure when to file for bankruptcy — before or after a divorce. Every situation is different, and we can advise you on the next steps you should take. There are several benefits to filing for bankruptcy before filing for divorce, including:
- Resolving the financial trouble first allows you to focus on the major divorce disputes such as child custody and division of assets.
- Bankruptcy can resolve many disputes regarding the division of marital debt well before a divorce is filed.
- If you and your spouse have joint debts, creditors can pursue payments from both of you, regardless of how debts are allocated during your divorce. Discharging your debts through bankruptcy before you file for divorce can eliminate the possibility that one spouse will be held responsible for the other spouse's debts.
- If a bankruptcy is filed after a divorce, you and your spouse might have to file separately, resulting in double the costs and double the effort.
However, there are some situations where filing for bankruptcy after divorce may be a better option. If you are planning to file for Chapter 13 bankruptcy, you will be required to make ongoing payments for a period of three to five years. If a repayment plan is established before you file for divorce, the plan may be interrupted, and it may become impossible for both you and your spouse to continue making payments. In some cases, a Chapter 13 bankruptcy may be severed into two separate cases, or it may be necessary to convert it to a Chapter 7 bankruptcy. Because of these issues, it may be preferable to wait until after your divorce has been finalized before filing for Chapter 13.
Contact Our DuPage County Divorce and Bankruptcy Lawyers
If you are facing divorce and are unsure about your options for addressing your debts through bankruptcy, it is wise to seek the counsel of an experienced lawyer who can carefully examine your situation and offer legal advice on how best to proceed. Even if we cannot directly handle your bankruptcy, we can offer a list of trusted referrals who are ready to help you toward a fresh new future. To arrange a free consultation, contact Andrew Cores Family Law Group by calling 630-407-1225 or by completing our online form. With offices in DuPage County and Kendall County, we have experience helping clients throughout Illinois.
