Bankruptcy and divorce often go hand in hand. And that’s for debtors in New York as well as elsewhere in the U.S. In fact, divorce is one of the leading causes of bankruptcy, along with medical debt and job loss.
Often people think that bankruptcy is a cause of divorce. But that’s generally not the case. Financial problems may put a lot of strain on a marriage. However, bankruptcy is the process that helps relieve that stress, so the causality is usually the other way around. Therefore, while bankruptcy and divorce are often associated together, bankruptcy is not in itself usually the cause of divorce.
In fact, divorce and bankruptcy are often linked because a divorce leads to a need to file for bankruptcy. This may be necessary to deal with the debts of one spouse. Or to deal with mortgage payments on a home that is no longer affordable once a couple is not sharing its finances.
A frequently asked question about Chapter 7 and Chapter 13 bankruptcy and divorce is whether one spouse can file separately from another spouse, or whether filing by one spouse necessitates a joint filing. The answer is that, yes, one spouse may indeed file for bankruptcy separately from the other spouse. Of course, which path makes the most sense for you is dependent on your situation and should be discussed with an experienced New York bankruptcy attorney.
For more answers to questions about bankruptcy and divorce, please feel free to contact experienced New York bankruptcy lawyer Bruce Weiner for a free initial consultation.
