Divorce and bankruptcy are two of the most stress-inducing events that any individual can face over the course of their life. The stress and anxiety brought on by either of these issues can be hard to deal with, but dealing with both simultaneously can be nearly unbearable. Fortunately, divorcees in Texas who are also facing bankruptcy may consult attorneys to help guide them through this very difficult time.
Before or after?
It is highly improbable that anyone will go through bankruptcy and divorce proceedings simultaneously. While it is completely feasible to file both motions at the same time, each jurisdiction will decide which matter will be heard first. In most cases, the divorce proceedings will take precedent over the bankruptcy filing.
There are times where filing for bankruptcy before filing for divorce may be advised, but that is completely contingent upon the financial position of the petitioner. This is just one of the reasons that legal counsel is such a good idea for someone facing either or both of these issues.
Chapter 7 or Chapter 13?
Chapter 7 bankruptcy protection cancels qualifying debt completely while Chapter 13 Bankruptcy allows for a repayment plan to be created and administrated by a court-ordered trustee. Depending on the type of bankruptcy being filed, it might be a good idea to file for divorce before filing for bankruptcy. Conversely, the benefits of filing for bankruptcy before filing for divorce revolve around the concept of having any joint-marital debt canceled before either party becomes responsible.
An attorney who is well-versed in both bankruptcy and divorce law in their state may guide their client through this tumultuous time. Either event requires that the client provide information about their assets, which have to be reported to the court. The attorney may help ensure that all of that is done and help the client get ready for the next chapter of their life.