A Law Firm Assisting Clients In Both Bankruptcy And Family Law Matters
Everyone faces hardships in life, but some suffer increased burdens when their hardships overlap. A good example is divorce and bankruptcy, which, for a variety of reasons, is an unfortunately common pairing. If you find yourself facing both marital troubles and debt problems, it is important to seek the help of a skilled attorney.
In Allentown and surrounding areas of Pennsylvania, you can find the help you need by contacting The Law Offices of Everett Cook, P.C. The firm’s founder, attorney Everett Cook, has been a trusted resource to clients for more than two decades, and he has considerable experience in both family law and bankruptcy law. He has earned a reputation for honesty and transparency, as well as no-nonsense approach to solving problems and finding effective resolutions for clients.
Bankruptcy And Divorce: What’s The Connection?
Money is one of the biggest points of contention in marriage, so it should come as no surprise that there is a connection between debt and divorce. Years of overwhelming debt issues, whether caused by outside circumstances or either spouse’s spending habits, can put a serious strain on a marriage. That’s why, after filing for bankruptcy, some couples also find themselves filing for divorce.
Conversely, divorce can lead to bankruptcy. If the family law process was acrimonious and drawn out, the couple may have incurred unnecessarily high legal bills. Divorce also tends to make necessities more expensive for each spouse, since they are no longer sharing the costs of housing, utilities, food and transportation. Maintaining two households can be financially burdensome, particularly if there are also minor children to care for in both locations.
Should One Legal Process Come Before The Other?
If you know you’re going to both get a divorce and file for bankruptcy, does the order of these events matter? It does in many cases. Here are some contrasting considerations to keep in mind:
- If you are seeking Chapter 7 bankruptcy, filing together with your spouse could help wipe out individual and marital debts, streamlining the divorce by simplifying property division.
- Filing jointly is less expensive than individually.
- Filing chapter 7 requires passing a “means test,” which may be easier to pass as individuals than as a couple, since both spouses will experience a reduction in income.
- If seeking Chapter 13, you are committing to a repayment plan lasting three to five years, so it likely doesn’t make sense to wait on getting divorced.
- The timing of your divorce could determine your bankruptcy exemptions, impacting how much personal property you can protect from liquidation.
- Even in a marriage, spouses may be in different financial situations. If one spouse is facing greater financial hardship, it might be better to wait to file because the other spouse may not need to pursue bankruptcy.
The bottom line is that each case is different. Therefore, it is important to discuss your particular circumstances with an experienced attorney like Mr. Cook, who can assess the pros and cons and help you choose the most advantageous strategy.
Find The Legal Help You Need Under One Roof
When you contact The Law Offices of Everett Cook, you’ll work with an attorney who understands the challenges and implications of your divorce and of your bankruptcy case. Mr. Cook can provide advice and guidance designed around you and your needs. To schedule an initial consultation, call the firm’s Allentown office at 610-673-0907, or reach out online.
Everett Cook is a debt relief agent. He helps people file for bankruptcy relief under the Bankruptcy Code.