Unfortunately, it’s not uncommon for money problems to lead to divorce. In fact, financial issues are one of the leading problems of divorce in the United States. Because of this, many couples are faced with contemplating bankruptcy at the same time as they file for their divorce in Georgia.
Bankruptcy Before Divorce
If you are married, even if you are not living together, you can file for bankruptcy together. After you finalize the divorce, each person may need to file separately—so filing together can save you money on the filing fee. Here are some reasons for bankruptcy before divorce:
- Both parties incurred debt during the marriage
- You will be stuck with your ex’s debts if they fail to pay them
- If your ex files bankruptcy and you don’t, you can be liable for their debt
Be sure to have your divorce attorney discuss all of your options with your Atlanta bankruptcy attorney. The bankruptcy attorney will be able to help you determine if it is your best interest to proceed with your divorce before your Chapter 13 or 7 bankruptcy is discharged. Your specific situation will determine whether filing for divorce during bankruptcy will affect whether or not you can comply with the court-ordered repayment plan. The bankruptcy attorney can also advise you on how to handle child support and/or alimony payments.
Bankruptcy After Divorce
Life after divorce can be difficult. All of the debts you once shared with your spouse are now divided equally. As a newly single person, it can be overwhelming to keep up with all of the payments. If this is the case for you, bankruptcy can be a way to help you move on. An experienced Marietta bankruptcy lawyer can help you determine if bankruptcy is an effective option for you after a divorce.
Debt Not Discharged by Bankruptcy
There are some debts that are not discharged by bankruptcy. So filing bankruptcy will not relieve you of your responsibility to pay the following debts:
- Child support
- Student loans
- Most tax debt
- Some criminal fines and penalties
Whether you file for bankruptcy before or after divorce, it can get complicated. It is best to discuss all of your options with a dedicated Marietta bankruptcy attorney. Call the Metro Atlanta attorneys at Cohen Law Office, LLC to find out how they can help you navigate the bankruptcy process.