Divorce causes stress and amplified emotions for all family members. Once you realize you must also reconcile marital debt, you can double the stress for you and your spouse. Filing a Kenosha bankruptcy before divorcing, preferably jointly, can be a great solution to marital debt problems. We’ve put together a list of seven reasons why filing a Kenosha bankruptcy before divorcing may be the perfect option for you and your spouse.
1. Filing bankruptcy jointly before a divorce to save money. When you file a joint Kenosha bankruptcy, debts can be cleared under one bankruptcy case, thus saving a lot of money on court and attorney fees. If you qualify for a Chapter 7 Kenosha bankruptcy, you both can eliminate unwanted debts, such as your credit card and medical debt. A bankruptcy may also decrease your divorce costs as well; you will avoid arguing over debt and simplify your divorce filing.
2. Bankruptcy may wipe out your responsibility to pay any debt as part of the divorce agreement. If you have an uncooperative spouse who refuses to file bankruptcy jointly, go it alone. Remember, do not agree to any conditions of your divorce that would require you to pay any part of any joint debt. Your Kenosha bankruptcy discharge freed you from those financial obligations. On a side note, you cannot file bankruptcy on debts you agreed to pay during your divorce. In order to be free of any marital debt, you must file bankruptcy first.
3. Reduce Stress. If you and your spouse qualify for a Chapter 7 Kenosha bankruptcy, you both can eliminate unsecured debt. This means no fighting over who pays what. Your Kenosha bankruptcy will be discharged in approximately 90 days. It can be fast and stress free with an experienced Kenosha bankruptcy attorney.
4. Increase Exemption Amounts. If you file jointly for bankruptcy before a divorce, you may be able to increase your exemption amounts and qualify for a Chapter 7 Kenosha bankruptcy. The State of Wisconsin allows you to double exemption amounts when you file jointly which means you are able to keep most if not all of the property you own.
5. Don’t Get Stuck with Your Spouse’s Share of Debt. If your spouse decides to file bankruptcy alone before or during the divorce proceedings, it can put a huge damper on things, especially for you. If his or her bankruptcy is discharged, you may be held responsible for all joint debts incurred during the marriage. This can lead to collection efforts, lawsuits, and a hindered credit score.
6. Save Your Marriage. According to several studies, the number one reason couples get divorced is financial trouble. Financial stress directly affects your marriage and can tear it down. Filing for bankruptcy prior to filing for a divorce may inadvertently save your marriage. It’s possible that all your marital issues will be resolved once your money issues disappear.
7. Save time. If any spouse files bankruptcy during the divorce proceeding, the divorce will be paused until the bankruptcy case is closed. This will drag out your divorce proceeding. It could make a very stressful and emotionally painful process longer and more expensive than usual. The best option is to file amicably and jointly together for a Kenosha bankruptcy before a divorce, if possible.
At Wynn at Law, we understand that divorce and bankruptcy are both stressful subjects for you. There are hard decisions for anyone to make. It helps to seek the assistance of a knowledgeable Kenosha bankruptcy attorney who can bring you peace of mind during this trying time. You have big changes impacting your life. We are here to help. We offer free bankruptcy consultations. If you are planning to file a divorce, feel free to schedule a free initial consultation with our Kenosha bankruptcy attorney. Find out what your options are and if Wynn at Law is the right fit for you. You can reach our skilled Kenosha bankruptcy attorney by phone at 262-725-0175 or by email via our website’s contact page. We have bankruptcy offices conveniently located in Lake Geneva, Delavan, Salem, and Kenosha. We have a 100% bankruptcy discharge success rate. Call us today.
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*The content and material on this web page is for informational purposes only and does not constitute legal advice.