Divorce is a process that will result in significant financial adjustments for both Georgia spouses. You may have serious concerns about how this choice will impact your finances and future interests, particularly in terms of how you will deal with your share of marital debt one the divorce is final. When everything is complete, you could be facing financial obligations and balances you cannot expect to manage on your own.
If you and your spouse accumulated a significant amount of debt over the course of your marriage, it is likely you will both be responsible for an equitable share of the balances. You may not be able to manage this debt with reduced financial circumstances immediately after your divorce. For this reason, you may be considering the benefits of filing for bankruptcy either before or after the divorce is final.
Making the best choice for your future
Filing for bankruptcy could be the best choice for your financial future, especially if your divorce will leave you with overwhelming credit card debt, a mortgage you can’t afford, student loans and other obligations. In a divorce, there is typically a relatively equitable division of marital debt between the spouses, but even a share of this debt can be more than you can effectively manage. Bankruptcy provides the opportunity to deal with certain types of debt in an organized and efficient manner.
It’s possible you’ve decided to file for bankruptcy, but it is critical to time your filing appropriately. Filing for bankruptcy in the middle of a divorce is particularly complicated, and this may be a last resort. Most financial experts agree that it is better to file before divorce. It likely does not offer significant financial benefit to first divorce and split the debt before filing for bankruptcy.
Consider your long-term interests
Every choice you make regarding your bankruptcy filing or your divorce should be made with your best long-term interests in mind. While you may not want to delay your divorce in order to first complete bankruptcy, this could the best option that allows you to most effectively lay the foundation for a strong and stable future. Before you move forward with either process, you will benefit from an understanding of all of the legal options available to you.