As is the case around the country, up to one-half of the married couples in New Jersey will divorce. Ending a marriage can take a financial toll on both parties even if their financial situation was good prior to the divorce. In some cases, money problems are what lead to the parties going their separate ways. Bankruptcy could be a way to alleviate financial problems.
The question could be whether to file before or after the divorce. If financial issues exist during the marriage, it may be advantageous to file a bankruptcy prior to filing for divorce. This way, the parties can eliminate as much debt as possible before beginning their separate lives. Further, neither party will be held liable for any debts that are discharged through a joint filing.
Creditors do not have to honor divorce decrees, and if one party files for bankruptcy, but the other does not, creditors will look to that spouse for payment of debts the other party is no longer legally bound to pay. Transitioning to a single-income household can be difficult, and some New Jersey residents are unable to keep up with their financial obligations. Eliminating as much debt as possible through bankruptcy could alleviate some of the monetary burdens as you try to move forward with your life.
Every aspect of a person’s life changes when filing divorce. When financial issues are keeping you from moving forward, bankruptcy can help. Every situation is different, and discussing your options with an attorney is essential to finding a workable solution. Doing so could provide you with the chance to start your new life on the best foot possible.