Here is the conclusion to our blog series Bankruptcy and Divorce in Colorado: 6 Things to Consider.
Some More Factors to Consider with Bankruptcy and Divorce
4. Whether the Separating Couple Can Work Together
Because money troubles and debt are often the source of acrimony and anger between marital partners, when the couple’s financial issues have become significant enough that both bankruptcy and divorce are being seriously considered, it may not be possible for these individuals to continue to work together in the short- or long-term future.
In fact, whether or not a separating couple can work together is critical to consider because a bankruptcy case (namely a Chapter 13 bankruptcy) may require that partners continue to work together for the next few years.
If there is no way for divorcing partners to feasibly work together in the future, then it may be a better idea for these partners to consider an alternate debt relief solution prior to filing for divorce (as a final divorce decree may make it impossible to later get marital debts discharged).
5. Whether the Separating Couple Would Like to Maximize their Bankruptcy Exemptions
When a couple qualifies for and intends to pursue a Chapter 7 bankruptcy case, filing for bankruptcy prior to divorce can allow the couple to take advantage of greater bankruptcy exemptions than if each individual filed for bankruptcy on his (or her) own. In fact, for certain exemptions – like, for instance, the Colorado homestead exemption, filing jointly with the person who is still a spouse can effectively double the allowable exemption.
Ultimately, this could end up meaning that waiting to file for bankruptcy before filing for divorce could end up allowing a couple to save and keep some of their more precious assets, which they can then divide up later in a divorce case.
The Bottom Line about Bankruptcy and Divorce in Colorado
The bottom line for people who are about to pursue a bankruptcy and divorce in Colorado is that, with a little of careful planning, it can be possible to minimize the costs, stresses and headaches of both the bankruptcy and divorce process. Therefore, if you are deciding whether to pursue filing for bankruptcy or divorce first, don’t hesitate to contact Colorado Bankruptcy Lawyer Jon B. Clarke to discuss your best options.
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.