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How to manage a bankruptcy with a divorce

Money has long been a source of strife for some married couples in North Carolina. In some marriages, financial troubles escalate to the point of being major contributors to the eventual breakdown of the relationship and the ensuing divorce. When this happens, some couples may find themselves trying to manage not only a divorce but a potential bankruptcy at the same time.

My Horizon Today indicates that people in this type of situation should take the time to carefully assess both their marital difficulties and, especially, their financial difficulties. It will be important to decide how to address the financial aspects of their marriage in part to know if they should file for bankruptcy together before filing for divorce or to pursue their divorce first and deal with their debts later on their own.

One factor that may play a large role in making this decision is what type of bankruptcy plan best fits their situation. A Chapter 7 plan generally can be completed in a matter of months, but a Chapter 13 plan lasts a minimum of 36 months. Therefore, a Chapter 13 plan may not be the best choice for a couple that wants to part ways as it would keep them joined for some time. Even with a Chapter 7 bankruptcy, however, the couple will need to be able to communicate well in order to complete the plan.

Bankrate adds that a divorce decree may well stipulate which spouse is responsible for which debts in a marriage. This, however, does not necessarily preclude one person from later filing for bankruptcy and then the creditors may choose to pursue repayment from the other spouse.

 

 

 

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Gastonia, NC 28054

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