Resolve your family law legal issues in a positive, compassionate environment.

Facing Divorce And Bankruptcy? Our Firm Is Here To Help.

For a variety of reasons, divorce and bankruptcy are often closely linked. In some cases, financial worries and disputes about money stress the marriage to its breaking point. In other cases, people in unhappy marriages may use “retail therapy” to cope with the grief they are feeling. No matter how someone finds themselves facing both divorce and overwhelming debt, they could greatly benefit from the help of an experienced and caring attorney.

In Madison and throughout Wisconsin, you can find the help you need at Friedrich & Fletcher, S.C. Our firm’s services include representation in family law as well as bankruptcy law, and our team of dedicated lawyers has earned a reputation for extraordinary legal skill and client service.

Deciding Which Legal Process To Pursue First

You can file Chapter 7 bankruptcy as an individual or as a married couple. Both options have advantages and disadvantages, some of which we discuss below.

Considerations When Filing Jointly

Seeking bankruptcy protection as a couple is less expensive than two individual petitions. Going through bankruptcy first can also simplify aspects of your divorce, like the division of property. A significant step in the bankruptcy process involves determining assets and assessing debts. Discharging debt through bankruptcy means it does not need to be disputed or divided in the divorce, and having a list of assets will be helpful when negotiating a division of the marital estate.

Chapter 7 requires the liquidation of some property to partially repay creditors, but certain properties may be exempt. Filing jointly means doubling the available exemptions on property owned together.

One downside of filing jointly is that it could make you ineligible for Chapter 7 since the incomes of both spouses are subjected to the means test. One or both spouses might qualify as individuals, but the combined income and household size could make them ineligible as a couple.

Filing Separately May Be Necessary Or Preferable

Even when a couple is married, they may not need to file as a couple. One spouse may have a much greater and more urgent need to seek bankruptcy protection. In such cases, they could file separately, whether before or after the divorce. The spouse who was not included in the bankruptcy filing will be spared the damage to their credit score.

As noted above, filing separately can also help each spouse meet income eligibility requirements that wouldn’t have been possible in a joint petition.

Finally, the dynamics of your relationship may make it necessary or at least easier to file separately. Existing grievances combined with disputes over child custody and finances could make it impossible to coordinate with your spouse on a bankruptcy petition.

There Is No Substitute For Case-Specific Advice From An Attorney

Perhaps the easiest way to make your decision is to consult an attorney with knowledge and experience in both divorce and bankruptcy law. They can provide feedback based on the specifics of your situation.

Each of our four talented lawyers offers clients practical legal advice and honest answers to their questions. When you visit our office, you’ll experience a comforting, judgment-free environment that puts you at ease to make the best decisions for your family and your future.

Contact Us Today To Discuss Your Case For Free

From our office in Madison, Friedrich & Fletcher, S.C., serves clients across Wisconsin. We know that your choice of attorney is important, which is why we offer free 30-minute telephone consultations to make your decision easier. To get started, call us today at 608-258-4660 or submit an online contact form.