Debt and divorce can be two sides of the same coin. In fact, while financial struggles are one of the most common reasons that married couples end up filing for divorce, divorce is one of the most common reasons that individuals end up needing to file for bankruptcy. When married couples facing serious debt have also made the decision to end their marriage, deciding whether to file for bankruptcy or divorce first can be a tricky and complicated decision – and filing for one before the other could end up costing (or saving) each individual a significant amount of money and stress in the long run.
In this three-part blog, we will take a closer look at some of the specific things that people should consider when it comes to choosing whether filing for bankruptcy or filing for divorce should be completed first.
Keep in mind that the discussion herein is general and that the specifics of your situation will determine which process you should pursue first. For more detailed information regarding your best options in terms of bankruptcy and divorce in Colorado, contact Colorado Bankruptcy Lawyer Jon B. Clarke.
Filing for Bankruptcy and Divorce: Important Factors to Think About…
1. The Amount of Unsecured Marital Debt
When the bulk of marital debt is unsecured debt, pursuing a bankruptcy case before filing for divorce may be the best option for a couple. This is because filing for bankruptcy first can result in the discharge of this unsecured debt, which may include debt such as:
- Credit card debt
- Medical bill-related debt
- Car loan debt.
Once such unsecured debt has been successfully discharged through a bankruptcy case, then pursuing a divorce to end the marriage (and to divide up/allocate any remaining debt that a couple may still have) will be the next step.
Don’t miss the upcoming additional parts of this blog for some more important info regarding bankruptcy and divorce in Colorado.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.
For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our clients’ cases are resolved as favorably and efficiently as possible.
Contact Us Today
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.