Ontario Bankruptcy During Divorce Lawyers
Many married couples have relationship and financial issues that they just cannot handle on their own anymore. Some go through divorce. Others file for bankruptcy. Sometimes these things happen at around the same time.
Doing one of these things is hard enough. When you’re divorcing and filing for bankruptcy, it can be an emotionally trying time. Not only is your marriage ending, but you’re dealing with financial turmoil.
The timing of these processes is crucial. In some cases, it is better to file for bankruptcy first. In others, divorce should be the first option.
What can you expect? What do you need to know about the processes? Wadhwani & Shanfeld can give you the advice you need as you deal with this difficult time. Contact our Ontario bankruptcy during divorce lawyers to learn more.
Should I Do Both at the Same Time?
You may think filing for both divorce and bankruptcy at the same time would be more efficient. However, this is rarely a good idea. Both cases will impact each other in some way, causing delays. When you file for bankruptcy, your non-exempt assets will become a part of your bankruptcy estate, which means that the judge in your divorce case cannot divide your assets until your bankruptcy case has concluded. If your divorce has alimony and child support issues, they can also slow down your bankruptcy case. It’s better to do one or the other first.
Filing Bankruptcy First
Filing for bankruptcy first can be beneficial. You and your spouse will only have to pay one filing fee and can share the legal fees of your bankruptcy attorney. Filing for bankruptcy first can make it easier to divide property in your divorce. If you and your spouse can discharge your unsecured debts, you will no longer need to pay them, which means they won’t need to be divided.
Filing Divorce First
Some couples choose to file for divorce first and then wait to file for bankruptcy after the divorce has been finalized. This might be a good idea if you plan to file for Chapter 13, as this allows you to retain more of your property.
Filing for bankruptcy after divorce may also be beneficial if you and your spouse cannot get along. If your divorce is filled with conflict, it will be hard for your spouse to work with you in your bankruptcy case. Therefore, it may be best to wait until the divorce is final.
Contact Wadhwani & Shanfeld Today
A divorce and a bankruptcy around the same time can seem like a double whammy, but in many cases, one causes the other. It’s all about timing. With the right advice, you can make both processes effective.
The team at Wadhwani & Shanfeld can help you understand your legal options when divorce and bankruptcy are involved. Schedule a consultation with our Ontario bankruptcy and divorce lawyers by calling (800) 996-9932.