Many couples who find themselves in a difficult financial situation may also be considering divorce. In many cases, it would be more beneficial to move forward with the bankruptcy before the divorce. This can help make the divorce process easier, as debts will already be addressed. Talking with a bankruptcy attorney about how a divorce may affect your bankruptcy is an important step before you make any decisions.
Our lawyers at the Jacksonville, Florida, law firm of Sacks & Sacks, P.A., is committed to helping clients understand their rights and options regarding bankruptcy. We are a skilled firm that focuses only on handling bankruptcy issues, including bankruptcy and divorce matters. A member of our legal team can meet with you, or with you and your spouse, to determine how best to handle the bankruptcy issues you are facing before a divorce is filed. We can discuss whether Chapter 7 bankruptcy or Chapter 13 bankruptcy may be the best way to address credit card debt and other secured or unsecured debt.
Hold Harmless Agreements
During the course of a divorce, a couple may have a hold harmless agreement created. This is a document that states who is responsible for which debts and that the other spouse is “held harmless” and not responsible for the other debts that have been assigned to the other spouse. However, it is important to know that creditors do not have to abide by these types of agreements. If both spouses’ names are attached to a debt, a creditor can go after either spouse in order to obtain repayment.
One Fee Bankruptcy
If you do file bankruptcy together with your spouse before you file for divorce, you will pay just one set of attorneys’ fees. If you file separately, and after the divorce, you will each have to pay separate attorneys’ fees. It may be in your best financial interests to move forward with the bankruptcy before you take action on the divorce.
Contact a Jacksonville Bankruptcy and Divorce Lawyer
For additional information about bankruptcy as it relates to a divorce, call 904-396-5557 or simply contact us online to schedule your free initial consultation with one of our Florida bankruptcy attorneys.