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Bankruptcy and Divorce

Many times a marriage breakdown includes financial distress. The divorce itself is probably not going to do much for rectifying the financial issues that are present in the relationship. This type of circumstance often raises the question, which should the couple do first? 

Should they go through the divorce proceedings, then file for bankruptcy or should the bankruptcy be completed first. The answer is going to depend on a lot of factors. The amount of property that is owned by you both and the debt ratio for each has to be determined. Even where you live is going to be important, and then the type of bankruptcy that is going to be filed has to be factored in.

Also, is it both partners that are going to each file for bankruptcy, or just one of the individuals? If you are going to file for joint bankruptcy then you would probably be further ahead financially to complete your bankruptcy proceeding prior to your divorce. This could make a difference even in the cost of your legal fees for the bankruptcy, as you are filing as one client as opposed to two separate proceedings.

Be sure that once you have advised your Louisville bankruptcy lawyer about your pending divorce decision to ensure that there are no conflict of interest issues arising. The other advantage of taking care of your bankruptcy first is that it may make it a lot simpler when it comes to the division of property and debts during your divorce proceedings.

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