Bankruptcy During a Divorce in Minneapolis, MN
If you and your partner wish to file for divorce and bankruptcy, it is generally a better idea to file for bankruptcy first. This will help avoid the hassle of two separate filings and allow you to save money by sharing a Minnesota bankruptcy divorce attorney. Additionally, you can protect twice the property in a joint bankruptcy than you can if you file separately and you may have a higher income bracket to file for Chapter 7 bankruptcy.
If you have joined debt, filing for bankruptcy makes it much easier to clear the debt, since both party’s names are on the contract. If only one person files bankruptcy on a joint debt, the creditors will go after the other person for the debt. A Minneapolis bankruptcy lawyer can help file a contempt of court proceeding to put an end to this collection, but it may take up to a year. It is generally much easier if both people agree to file bankruptcy together.
Filing for bankruptcy before divorce will make divorce proceedings easier, as it will eliminate the divorce court’s need to allocate debt between the couple. This will also reduce the cost of the divorce proceedings.
When you want a completely fresh start at life, a Minnesota bankruptcy divorce lawyer can help make that a reality sooner than you ever thought possible.
If you have any questions regarding the effects of bankruptcy on a divorce, contact a Minneapolis bankruptcy attorney today. We look forward to helping you.