Can I File for Bankruptcy if I Am Getting a Legal Separation?
In states that allow for them, a married couple can file for a legal separation as long as they are residents of the states in which they file. Getting a separation does not change your ability to file for bankruptcy protection, although filing for bankruptcy can complicate some of the issues involved. Bankruptcy and legal separation issues differ, depending on where you live, so you should talk to an attorney if you need legal advice.
Other People Are Reading
-
Bankruptcy
-
Bankruptcy is a form of legal protection that prevents creditors from taking financial actions against a debtor after the debtor files for protection. Individuals and married couples can file for two main types of personal bankruptcy, known as Chapter 7 and Chapter 13. Individual debtors can file for bankruptcy with or without an attorney, although corporations, partnerships and business trusts must have an attorney to represent them before the bankruptcy court. According to the Salt Lake City Bar Association, anyone can file for bankruptcy regardless of how much debt you carry.
Legal Separation
-
A legal separation is a court order or decree that addresses property, child custody and other related issues between a couple. A legal separation is nearly identical to a divorce in that it allows the couple to live separately and it decides, for example, if either spouse has to pay alimony or child support, as well as divides the marital property between the two. Legally separated couples cannot remarry and only a court can grant a legal separation after one or both parties ask it to do so. Legal separations are mostly a question of state law and not all states allow for them, according to the Women's Divorce website.
-
Bankruptcy and Legal Separation
-
Whether you are legally separated, in the process of separating or intend to become separated does not directly affect your ability to file for bankruptcy protection. Although going through a bankruptcy does not preclude you from filing, there are numerous financial issues that affect both the bankruptcy and the legal separation. If you file for separation prior to filing for bankruptcy, you can always ask the court to modify your separation petition or bankruptcy plan as needed to take into consideration your new circumstances.
Joint Bankruptcy
-
You and your spouse can still file for a joint bankruptcy even if you are separated. As a legal separation does not end the marriage, you can file for a joint bankruptcy if you share debts or assets and if both spouses agree to a joint filing, according to the website Bankrate. Speak to an attorney about the issues involved in filing jointly or filing during a legal separation.
-
