Marriage and finances go hand in hand, and when one party files for bankruptcy, it can have significant impacts on the other. It is not uncommon for couples to seek a divorce during the bankruptcy process, but can a person get a divorce in New Mexico if their spouse has filed for bankruptcy?
The Complexity of Bankruptcy’s Impact on Divorce
Filing for bankruptcy is often seen as a sign of financial distress, which can strain a marriage and potentially lead to divorce. When an individual files for bankruptcy, it temporarily halts their debts, forcing creditors to cease all collection efforts while the bankruptcy case is ongoing. During this time, the bankruptcy court assesses the debtor’s assets, debts, and, if necessary, establishes a repayment plan.
Bankruptcy proceedings usually span several months, introducing additional complexity, especially if a couple is also pursuing a divorce simultaneously.
Navigating Divorce in New Mexico Amidst Ongoing Bankruptcy
Considering that bankruptcy can create significant financial burdens for both parties, some couples may view divorce as a viable option, potentially reducing exposure to their spouse’s bankruptcy debts. If a couple chooses to proceed with divorce during an ongoing bankruptcy process, coordination with their respective attorneys becomes crucial to avoid any negative impact on either set of proceedings.
Importantly, filing for divorce does not automatically halt or disrupt the bankruptcy proceedings. The bankruptcy court will evaluate how the debts should be resolved in light of the divorce, and depending on the bankruptcy type, creditors may become involved in the process.
Key Considerations for Filing for Divorce During Bankruptcy
Anyone contemplating divorce during their spouse’s bankruptcy should carefully factor in several considerations to minimize potential complications. These important considerations include:
Understanding the Type of Bankruptcy Filed
The type of bankruptcy your spouse files can significantly affect the timeline. Chapter 7 bankruptcy is generally resolved more swiftly, typically within six months. Conversely, Chapter 13 bankruptcy can extend for up to five years, which could delay the finalization of divorce proceedings.
Safeguarding Shared Assets
Shared assets like bank accounts, property, and vehicles may be susceptible to the bankruptcy proceedings. It is essential to engage a divorce attorney who can provide guidance on safeguarding these assets throughout the divorce process.
Budgeting for Legal Representation
Divorce and bankruptcy proceedings inherently involve costs that need to be factored into your financial planning. Collaborating with your divorce attorney to develop a payment plan can help manage these expenses effectively.
In Conclusion
In summary, obtaining a divorce in New Mexico while a spouse’s bankruptcy proceedings are ongoing is indeed possible. However, it introduces additional legal complexities that necessitate careful handling. To successfully navigate these proceedings, it is highly recommended to seek assistance from an experienced divorce attorney. If you are searching for a professional divorce and bankruptcy lawyer in New Mexico, reach out to a legal expert today.