concept of section of property after divorce.
Divorce can significantly drain an individual’s finances, emotions, and mental health. Many Americans are unaware of just how costly the process of dividing a single household into two distinct households can be. Divorce is the leading cause of financial hardship for many individuals who ultimately choose to file for bankruptcy. Pursuing bankruptcy is an excellent option for many people struggling with debt. If you’re in debt and seeking a divorce, bankruptcy may be a great option for you too. However, it’s important to understand that filing for bankruptcy before your divorce is finalized can be tricky.
If you’re getting a divorce and believe that bankruptcy may be a good option for you, know that the experienced team at Ballstaedt Law Firm can effectively guide you through this challenging time. It’s not going to be enough to work with “any old” cheap bankruptcy lawyer Las Vegas residents trust. For this tricky situation, you’ll need a cheap bankruptcy lawyer in Las Vegas that knows exactly what they’re doing and how to protect your interests.
You May Want To File Before or After Divorce
To make matters simple, so you don’t have to navigate multiple cases at the same time, you may want to file for bankruptcy before or after divorce. Filing before your divorce is finalized has merit but it can also land you in legal hot water if you start treating marital assets in certain ways without first obtaining permission from a family law judge. Know that no matter when you file, an “automatic stay” is enforced. This means that creditors cannot contact you and your property and assets are frozen. The bankruptcy court will then start sorting through what assets you have, and what debts you owe. Our firm’s effective yet cheap Las Vegas bankruptcy lawyer team can advise you regarding when it might make the most sense to file your bankruptcy case given that you’re also seeking a divorce judgment.
What Happens If Divorce and Bankruptcy Overlap
Let’s say for you filed for divorce and then shortly afterward filed for bankruptcy, or vise versa. The downside could be that your divorce process could take much longer than you hoped it would. This is because when the automatic stay is put in place, the family court won’t be able to access and split up your assets since they are temporarily on hold. Depending on your dynamic with your soon-to-be ex-spouse, prolonging divorce could add more emotional stress for both you and your family. However, depending on how challenging your financial situation is, you may be better off filing for bankruptcy first. Please speak with our effective yet cheap Las Vegas bankruptcy lawyer team if you have questions regarding when it might be best for you to file for bankruptcy (before, during, or after your divorce is finalized).