Our cheap bankruptcy lawyer Las Vegas, NV knows and trusts understands that 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, Nevada 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.
Don’t Try to Go Through This Process Alone!
Getting a divorce and filing for bankruptcy can seem like a double whammy. Not only are you ending your marriage but you are also going through a stressful financial situation. These two things can certainly be enough to deal with on their own but put them together and you may feel like you have a recipe for disaster. Because of how complicated things can get, working with an attorney who understands how divorce can impact the bankruptcy process is imperative. When you are preparing to get a divorce, it is important to understand how discharging debts and filing for bankruptcy will impact you and your spouse and whether it is right to file for bankruptcy before or after the divorce has gone through.
What happens if we are currently going through a Chapter 13 repayment plan during the divorce?
When it comes to the bankruptcy process, one of the most important things is going to be how you and your spouse are acting toward each other. In the best of situations, you are both amicable. While one of the spouses may wish to work with a separate attorney during this process, you can go to the bankruptcy court to get approval to stay with the current repayment plan if it is working well for both of you. Similarly, you may wish to split the repayment plan in two, a process that would still require you to get approval from the bankruptcy court.
If, however, you and your spouse simply cannot work together during the divorce process or do not wish to delay the divorce until the bankruptcy process is complete, then you can ask the court to stop the Chapter 13 repayment plan. In doing so, you and your spouse will need to assume responsibility for the debts you have.
How does community property complicate bankruptcy during a divorce?
Because Nevada is a community property state, this can complicate the bankruptcy process during a divorce because you may be unsure of where you stand in terms of property you own. Waiting for the divorce to go through can help each spouse understand what kind of property they have and how it may be discharged during the bankruptcy process. That said, you cannot discharge child support and alimony with bankruptcy.
When you are on the brink of divorce and want to file for bankruptcy, you want to have an attorney who can help you with each aspect. Contact us now.
What Happens If Divorce and Bankruptcy Overlap
Let’s say you filed for divorce and then shortly afterward filed for bankruptcy, or vice 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, Nevada 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).