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Divorce and Bankruptcy: How One Affects the Other
Are you going through a divorce and worried about how it will affect your finances? Do you want to know how to avoid bankruptcy during your divorce? From the effects on the children to the impact on your credit, it’s all there.
It’s no secret that going through a divorce can put you through an emotional and financial rollercoaster. Adding the potential to declare bankruptcy can only add to the stress you might experience. Let’s take a closer look at how divorce and bankruptcy can affect one another.
Costs of A Divorce
The average cost of a divorce in Florida can vary greatly depending on several factors. It can be confusing to determine how much it will cost you in expenditures because there are so many different fees and terms that need to be accounted for when figuring out the costs. On average, a divorce in the state of Florida can cost you anywhere from $500-$100,000 in fees. Again, many factors go into this, such as:
- lawyer fees
- court fees
- child support
It can feel overwhelming and financially stressful to place your hard-earned money into a divorce. However, to go through with the proceedings, these fees must be paid promptly.
What is Bankruptcy?
When you are unable to pay back the debt you own to collectors, it can feel overwhelming. In severe cases filing for bankruptcy is often the best solution to this problem. Although this is the last resort, it can help you get back on your feet again. In short, bankruptcy is when a debtor files a petition to place a hold on all of their debt owed to creditors. There are many different types of bankruptcy; however, in general, they all help to alleviate the payment of your debt by looking at other forms of repayment that might be more manageable.
Although this may seem like the answer to your debt issues filing for bankruptcy is a severe process. Ultimately it can affect your credit score for years to come and keep you from receiving loans in the future.
How Could Divorce Effect Bankruptcy?
The biggest question is how my divorce will affect filing for bankruptcy and vice versa. Typically, it is easier to file for bankruptcy before a divorce. Although it might make dividing assets longer, it will be more beneficial to all those involved. However, on the flip side, filing for bankruptcy after a divorce can make things more complicated once the judge has ruled on all of the pressing matters within your case. If you believe that your’re soon to be ex-spouse will file for bankruptcy after or before divorce, it’s best to get a lawyer involved who knows more about bankruptcy law.
Divorce and bankruptcy can be a tricky situation. That’s why you need a divorce lawyer behind you that will help you navigate these confusing times without feeling overwhelmed. Here at Koleilat Law, our attorneys are ready to help you through your divorce and reduce the worry and stress that comes with it. Contact us today to learn more about our services and speak to an experienced divorce attorney.