Financial issues are one of the most often cited reasons for disagreements and stress in a marriage. Unfortunately, it is also often the cause for the couple to file for divorce. Divorce can also be a driving factor in why an individual or couple makes the decision to file for bankruptcy. A couple who has made the decision to both divorce and file for bankruptcy may be unsure which legal process they should initiate first. A Rockland County bankruptcy attorney can help.
Filing for Bankruptcy Before Divorce
Last year, more than 650,000 individuals filed for bankruptcy. That was about a 10 percent decrease from the prior year. However, it is estimated that the number of filings will spike dramatically over the coming months as financial protections and assistance programs put in place due to the COVID-19 pandemic are lifted. Many people may find that filing for bankruptcy is their only option for relief and to obtain a fresh start.
A Chapter 7 bankruptcy basically eliminates the majority of a person’s debt. Chapter 13 bankruptcy provides an affordable payment plan for the individual to pay back their debt within a certain timeframe.
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