Ellicott City, MD Family Law and Bankruptcy Attorney

Skilled Family Law Attorneys Helping People Find Debt Relief During Divorce in Ellicott City, Maryland

Getting a divorce or addressing other family law issues and filing for bankruptcy at the same time is a lot to deal with at once. It is normal to feel overwhelmed when you are facing two separate court cases. Either type of case can be extremely stressful on its own, but your concerns may be compounded when you are unsure about whether either case will affect the other.

While simultaneously going through a divorce and a bankruptcy is not easy, there are a lot of benefits to handling both cases together. You and your spouse likely have deeply entwined financial lives. Whether you combined your finances or kept separate bank accounts throughout your marriage, the court will view almost any debt either of you acquired during your marriage as marital debt. This may seem very unfair if your spouse is the one who misused credit cards or caused you to fall behind on mortgage payments. Regardless of how your debt came about, filing for bankruptcy can bring you relief quickly so that you can get a fresh start when your cases conclude.

When you are dealing with divorce or other family law concerns and are also seeking debt relief through bankruptcy, it is important to have a skilled multidisciplinary attorney who can guide you through both cases strategically. At Law Offices of Marc A. Ominsky, LLC, our attorneys understand the complex interplay between divorce and bankruptcy. Each case will affect the other, so you need a lawyer who understands both well. We can walk you through important decisions like which case to file first, whether to file bankruptcy together with your spouse, and how to approach dividing your marital property if liquidation will be a factor.

Should I File for Divorce or Bankruptcy First?

Starting your cases in the right order is important. Whether you should get divorced first, file for bankruptcy first, or do both at the same time depends on factors like:

• Which Type of Bankruptcy You Are Using: If you are planning to file for Chapter 13 bankruptcy, it may make more sense to get divorced first. If you are still married when you and your spouse file under Chapter 13, both of your incomes will be used to calculate your repayment plan. When you get divorced, your repayments would have to be recalculated and divided between you and your spouse. If you are using Chapter 7, it may make more sense to complete your bankruptcy first. That way, you can eliminate marital debts and divide the assets that remain after liquidation. Being married might also affect whether you can pass the means test for Chapter 7.
• Your Plans for Your Marital Home: If you are trying to stop a foreclosure, you will need to act quickly to file for bankruptcy. Otherwise, you will need to consider how you plan to divide your interest in the marital home during your divorce.
• Your Level of Marital Conflict: If you and your spouse are amicable, you may have an easier time completing the bankruptcy process together. Dividing your marital assets may be less complicated if you complete your bankruptcy first.
• Maximizing Exemptions: Whether you are married or single can affect your bankruptcy exemptions. Our lawyers can advise you on the best approach to take to keep as much of your property as possible.
• Whether You Both Need to File for Bankruptcy: If you want to file for bankruptcy and your spouse does not, you should discuss your situation with our attorneys. Filing while you are still married can help you protect shared assets, but it can also make your bankruptcy and divorce more complicated.
• Costs: It can be less expensive to file for bankruptcy together as a married couple than to file as two separate individuals after you complete your divorce.
• Support Obligations: It is important to know that you cannot discharge family support obligations, such as child support and alimony, through bankruptcy. By working with an attorney who has experience in both bankruptcy and family law, you can make sure your obligations will be based on your financial situation.

Contact Our Ellicott City Divorce and Bankruptcy Attorneys

Law Offices of Marc A. Ominsky, LLC is experienced in helping people who are going through divorce and bankruptcy at the same time. Our Ellicott City, MD bankruptcy lawyers will do all we can to guide you through this challenging period so that you can receive a fresh start and avoid potential financial problems in the future. Contact us at 443-539-8712 for a confidential consultation.