After the recent economic meltdown, a large number of people incurred overwhelming credit card debts and other debts. Financial turmoil often leads to mental stress. In this situation, you may see couples fighting over petty issues. As a matter of fact, these trivial issues may take the shape of serious conflicts between couples.
Divorce and Bankruptcy
Money problem is one of the major stresses in marriage. In this modern era, it’s one of the common reasons for separation and divorce in Rhode Island and Across the United States. There is an indispensable relation between financial stress and marital separation.
In many divorce cases, couples file for divorce along with a bankruptcy petition. In Many cases the Parties file before divorce. In some cases one spouse files for federal Bankruptcy protection and the other does not. In Family Court across the United States and in Providence Family Court, you may find couple blaming each other for their financial problems. This leads to an endless cycle of finger pointing at each other blaming each other for the bad marriage and the parties poor financial state.
Financial problems
A successful marriage is possible through a transparent communication about your financial matters. Most couples believe that divorce can solve their financial issues. Well, divorce can help you with separation but it’s not usually possible to get rid of your financial liabilities in a divorce.
Please consult with RI Divorce Lawyer, David Slepkow and a Rhode Island Bankruptcy Attorney before making any decisions regarding your legal options
Bankruptcy and divorce
In most of the cases, divorce often exacerbate the problem as the couple may have high living expenses separately along with staggering debt burden. The parties may also have alimony, child support, and property settlement obligations to the other spouse. It is a basic problem couples faces when they decide whether to file bankruptcy before, during or after a RI divorce. Most of the financial experts believe that bankruptcy is a rehabilitative option, and the last resort not only to get rid of debt but also an attempt to save your marriage.
Why filing bankruptcy before divorce or during the divorce process is a better option?
Here are some of the basic reason why it may be essential to get out of the debt rut before filing for divorce or during the Divorce Case:
Save more by filing jointly: When you file a joint bankruptcy, instead of two separate filing fee you need to pay one court filing fee. Discharge of debts:
- When you file jointly, all debts whether joint or individual debts may be discharged. Therefore, the creditors may not be able to harass the non-filing spouse for joint debt.
- Qualify for the “Means Test”: Well, your large household size can help you to qualify for the means test and can be eligible for Chapter 7 Bankruptcy (exceptional cases).
- Easier divorce process: When you’ve already settled your debts then you’re not required to worry about debt obligation distribution. Filing joint bankruptcy may exempt both husband and wife to pay on the joint debts incurred after marriage.
Therefore, the couple can separate on a good note without harassment and humiliation in the court. You can get rid of the marital or community debt without any problem if you and your spouse file bankruptcy before filing divorce. Once you get out of the financial rut and stressful marital life, you can start afresh by rebuilding your credit and wisely managing your personal life in future.
“Many people cite divorce as a leading reason for their bankruptcy filing. However, planning ahead can make both your bankruptcy and your divorce less complicated and more cost effective. Whether you should file a bankruptcy before or after a divorce depends on where you live, how much property and debt you have, and what type of bankruptcy you wish to file. Read on to learn more about what to consider when deciding which you should file first: bankruptcy or divorce.” Nolo