Bankruptcy Lawyers in Tallassee AL sometimes are approached by a married couple that is planning to get divorced. They want to know whether it’s better to file for bankruptcy before divorce proceedings begin, or if they should wait until the divorce is final. They also may be confused about whether to file for Chapter 7 or Chapter 13. These are complicated issues that an attorney can provide insight about during a free consultation.
An Initial Consultation
The couple may have already tried to find these answers online. The problem with this type of research is that articles are usually filled with complex legal terms and tend to be written as though the reader has a legal background. That’s not true of most people, though. Instead, scheduling an initial consultation with one of the Bankruptcy Lawyers in Tallassee AL and preparing a list of questions is a better option.
Chapter 7 and Chapter 13
Depending on the situation, the couple may be better off clearing up their debts before divorcing. Chapter 7 is generally a faster process than Chapter 13 because it wipes out a large amount of debt. Chapter 13, in contrast, has a repayment plan that usually lasts at least three years. The debt is combined into one monthly payment that is significantly more affordable than having to make numerous payments each month.
Waiting to Divorce
Most couples who are ready to divorce don’t want to wait that long, but there are exceptions. Some are ready to live apart but they get along reasonably well and have no compelling reason to make their split legal. Neither of them may be interested in remarrying anytime soon, so remaining legally bonded while working to pay off their financial obligations can be advantageous.
Financial problems can be a main factor in a couple’s relationship breakdown. Working with a law firm such as Courtney & Mann LLP and filing for Chapter 7 while they are still married helps them both start a new life without the baggage of debt hanging over them. Otherwise, they are forced to divide up their debt in the divorce proceedings, which can lead to contentious moments.