Denver’s Leading Bankruptcy Team Weighs In and Offers Insight into the Process
Financial issues are certainly a primary reason why married couples divorce, and – when they’re not a primary cause – they become an important topic during divorce proceedings.
No one plans to divorce, and these circumstances can be very hard on us, even if we feel we’re making the right decision. There will be many emotions along the way, and a great deal of thinking about how things could have been, and more. First, we want to let you know that these feelings and thoughts are normal. Most major transitions in life come with high levels of stress because we’re human.
However, there’s an undeniable force that can help get you through any difficult situation, and that’s an understanding partnership. Friends, of course, should be relied upon heavily. But when you need the kinds of support and expertise that friends don’t have, being able to trust experts who can listen, understand, and provide effective solutions is of the utmost importance.
If you and or your spouse have significant debt, Wink & Wink, the leading Denver bankruptcy attorneys near you, may be able to help. Our team is here to guide you through debt considerations related to your divorce and your finances, including bankruptcy. If the divorce is amicable, it can make sense to review your debt relief options before filing divorce because removing the debt before divorce can simplify the divorce proceeding. If the divorce isn’t amicable, you may still benefit from a consultation with Wink & Wink, so that you understand how the divorce will impact your debt relief options.
In certain circumstances, Wink & Wink can collaborate with your divorce lawyer to formulate the most cost-effective strategy for structuring your divorce. As premier providers of debt settlement strategies for people and businesses, Wink & Wink is always here to deliver the education and resources you need to be successful in the next phase of your life.
From Our Denver Bankruptcy Lawyers: When to Explore Debt Relief Before Divorce
In general, couples who are amicably divorcing and have debt they cannot pay should explore joint debt relief prior to divorce. Bankruptcy is a legal bargain to get out of debt that can cost you based on your ability to repay. If you and your spouse’s combined income and assets will not require you to pay much, if anything, to your creditors in bankruptcy, filing for joint Chapter 7 bankruptcy prior to divorce can make sense. In this case, it will enable you both to get out of debt before divorce, so that you both have a fresh start, and don’t need to argue or fight over who should pay the debt.
If you and your spouse wish to explore debt relief prior to divorce, contact Wink & Wink for a free consultation. You can call us at (303) 410-1720, or send us a message online, and our team of bankruptcy attorneys near you can ensure you receive the experience, strategy, and follow-through you deserve as you walk through your current challenges.
Exploring Debt Relief During Divorce, and How Our Bankruptcy Lawyers Can Help
If you and your spouse are not amicable and have debt that you cannot pay, exploring debt relief during and after divorce can make sense. It is never too early to explore your debt relief options when faced with debt you cannot pay. While the lawyers at Wink & Wink are not experts in divorce and family law, most divorce and family law attorneys are not experts in debt relief. In this way, working with Wink & Wink while also working with your divorce lawyer can make sense.
For example, if you have debt in your name that you feel your spouse ran up and should pay, you may be inclined to push this issue in your divorce proceeding. Such fights can dramatically increase the cost of bankruptcy and may not be worth it if you’re also a good candidate for bankruptcy. If you can get out of the debt in bankruptcy after divorce, it may make more sense to agree to pay the debt in your divorce while trying to obtain other benefits in the divorce, like a greater share of assets. Of course, advice from debt relief experts such as Wink & Wink can help you by advising which assets will be protected in bankruptcy and which will not.
Additionally, having the advice of a debt relief attorney while going through divorce can help with the structure of asset division and domestic support obligations such as child support, alimony, and maintenance. In general, domestic support obligations are not discharged in bankruptcy, but property settlement obligations can be discharged in Chapter 13. There can be a delicate balance in how these obligations are structured which could enable you to optimize debt relief in bankruptcy after divorce.
Exploring Debt Relief After Divorce
While it may have been beneficial to explore debt relief prior to and after divorce, you can’t go back in time. And there are often options for debt relief after divorce. For example, property settlement obligations and orders for attorney’s fees related to these can be discharged in Chapter 13 bankruptcy. Even if you cannot get out of any debt ordered by the divorce court, you may have other debt which is dischargeable in bankruptcy or can be cost-effectively settled outside of bankruptcy.
Also, there are circumstances when you and your spouse will benefit by filing bankruptcy after divorce. For example, a common situation occurs when both spouses are working in which their combined income will require them to file Chapter 13 in a joint bankruptcy and repay a substantial portion of their debt over five years. However, their income as divorced individuals may not require them to pay anything. In such a case, the couple is better off filing bankruptcy separately after divorce.
While Wink & Wink are not divorce lawyers, we are experts in debt relief. When facing divorce, our team of Denver bankruptcy attorneys near you also recommends finding out how much debt you have in total – both yours and your spouse’s – including business debt, credit card debt, and any other money that is in collections or is being sought by creditors.
Not only is this important in helping to determine where you stand financially in divorce proceedings and how to equally and fairly split debt, it will help you figure out whether bankruptcy or debt settlement will accompany your divorce and when you should explore those options.
How to Handle Bankruptcy and Divorce: Tips from Wink & Wink’s Expert Team
If you’ve gotten a fair picture of your assets, as well as debt, you may be wondering whether you and your spouse should file for divorce – and whether you should do this jointly or after you’ve made your divorce legal.
However, there’s far too much information on the Internet that will make you feel like you’re going in circles. To that end, Wink & Wink provides our highest level of expertise and counsel with these important suggestions for bankruptcy and divorce.
Whether we’re helping our clients with debt settlement or any of our other legal services, we strive to be the bankruptcy attorneys near you who can offer transparent, clearly-communicated advice that will help you thrive.
Consider the following four points when considering filing jointly for bankruptcy:
- Jointly filing for bankruptcy may significantly reduce the cost of filing after divorce as well as the cost of your divorce. If you and your spouse are amicable and have debt, you should explore this option before filing for divorce.
- Once you’ve jointly discharged your debts and undergone bankruptcy proceedings under the guidance of a bankruptcy attorney near you, the process of dividing other assets is far simpler when you do make your divorce final.
- Bankruptcies in Colorado include exemptions – property that creditors can’t collect on. When you file jointly, much of the time those exemptions are double what they would be if you file on your own. In certain cases, this can enable you to protect property in a joint bankruptcy that a divorced person awarded that asset in full will be unable to protect.
- If you file jointly, you may be able to file for Chapter 7 bankruptcy by meeting the median income threshold for a two-person household. However, if one of you files separately, they may make too much money for Chapter 7 requirements, and have to file for Chapter 13. This is less advantageous, when it can be avoided effectively with Chapter 7 bankruptcy.
Additionally, consider these two points when considering filing for bankruptcy after divorce:
- Although there are some financial obligations to your spouse that can be discharged when filing for bankruptcy alone, any obligations related to domestic support cannot be discharged.
- When you are over the median income as a two-person household, but under this median individually, you will be able to file for Chapter 7 bankruptcy by yourself, which allows you to discharge most debt. Once you have divorced, your spouse’s income is no longer a factor in determining how you file.
Wink & Wink’s Denver Bankruptcy Team Can Guide You Through This Difficult Time
No matter your particular situation, if you need assistance with bankruptcy or debt settlement before or after divorce, Wink & Wink can provide expert counsel, beginning with a free consultation.
You can also call us at (303) 410-1720, or send us a message online, and our team of bankruptcy attorneys near you can ensure you receive the experience, strategy, and follow-through you deserve as you walk through your current challenges.