The Cons of Filing Bankruptcy Before Divorce
When you are headed for a divorce and you have mounting debts, you may consider filing bankruptcy before your divorce is finalized to save both you and your ex-spouse some money. This may not be the best option in all cases, as certain debts will not be wiped out by filing bankruptcy. As with any bankruptcy case, it is important to consult an experienced bankruptcy lawyer and divorce lawyer before decided to file.
If you are going through a divorce and are considering bankruptcy, contact the Austin divorce lawyers of Slater, Kennon & Pugh Ltd.LLP at 512-472-2431 to learn more about how to proceed.
When Not to File before Divorce
In many cases, filing bankruptcy before divorce can be beneficial to both spouses, but there are instances that may make it less desirable. Bankruptcy is meant to reduce or completely pay off debts, but certain debts will not dissolve as a result of bankruptcy, including:
- Student loans
- Alimony
- Child support
- Criminal restitution
Additionally, filing bankruptcy will not stop the division of property in the divorce proceedings. If you filed a prenuptial or postnuptial agreement, you likely will not want to file bankruptcy before getting divorced even if your spouse may be headed for one after the divorce is finalized.
Though you may be held accountable for your spouse’s debts after he or she files for bankruptcy, you may be better off handling those debts when they come to you depending on the financial situation you will be in post-divorce.
Contact Us
If you are going through divorce and are concerned about your debts, contact the Austin divorce lawyers of Slater, Kennon & Pugh Ltd.LLP at 512-472-2431 to find out how we may be able to help you.