What Do I Need to Know About Bankruptcy and Divorce in Arizona?
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There are exceptionally challenging times in our lives when partnering with an attorney is the smartest move we can make to protect ourselves from the unknown.
When two of those life-changing times combine in the form of divorce and bankruptcy, both can seem overwhelming. Unfortunately, they are also the two decisions that take both spouses’ involvement to reach the best solutions that will allow each party to move forward with confidence.
Our bankruptcy attorney in Tucson, Eric Ollason can help you disentangle your finances, so your unique financial strains can be fully understood before or after filing for divorce in Arizona.
The Truth About Bankruptcy and Divorce in Tucson, Arizona
Keep in mind, we do have not divorced attorneys, so seeking independent counsel to dissolve a marriage is highly recommended.
But we do know this: Behind medical debt and job loss, the costs associated with divorce are one of the most common reasons people consider bankruptcy.
To determine your options, you must first realistically understand how bankruptcy and divorce financially intersect, so you can make an informed decision about how you proceed with either or both.
Here are a few things to consider when talking to your spouse about divorce and bankruptcy.
Which Should Come First? Divorce or Bankruptcy in Tucson, Arizona?
Since divorce is a highly personal decision, we can only provide insight as to how your finances may help dictate that decision.
Depending on what assets and debts you jointly share including whether you own a home together, have equity in the home, or if one of you intends to keep it you may want to consider seeking bankruptcy together.
What Are Our Bankruptcy Options in Tucson, Arizona?
Only married couples can jointly file for bankruptcy, so if it is possible to collaborate on filing, you may want to consider it, as all individual and joint non-priority debt may be discharged, leaving you both with a clean slate going forward.
If your relationship has passed the point of collaboration, consider exploring other debt-relief options to help make the transition into affording two separate households a little easier.
The other thing to consider and an experienced bankruptcy attorney can help you determine your financial standing more clearly is that if your combined income is too much to file Chapter 7 bankruptcy together, you may consider waiting until after the divorce to file separately.
Chapter 13 bankruptcy is another option, which will allow you to reorganize your debt to repay it partially or in whole. However, this bankruptcy process may take anywhere from three to five years, which may be too long for some couples who wish to go their separate ways sooner than later.
Each of these bankruptcy options has stringent asset to debt ratio requirements and will require you to consider mortgages, car payments, and other marital debt to ensure the right bankruptcy filing encompasses your complete needs separately or jointly.
Contact Our Experienced Bankruptcy Attorney in Tucson, Arizona, Eric Ollason
Do your research, discuss your financial goals with each other, and contact our experienced bankruptcy attorney in Tucson, AZ, Eric Ollason, to learn more about your legal rights and options to start fresh by calling 520-791-2707 to schedule a free consultation today.