If you are like a lot of people in Michigan, when you have historically thought about getting divorced, your mind becomes keenly aware of the possessions or assets that you might lose in the process. Certainly, this may be part of a divorce but along the way, any debts you and your spouse have must also be addressed. If your debt situation is serious enough, you may even be contemplating filing for divorce. Knowing how or when to do this relative to your divorce requires some investigation.
As explained by My Horizon Today, there are two primary types of consumer bankruptcy and one of these - a Chapter 13 bankruptcy - is a plan that may last between three and five years. If this is the type of bankruptcy right for your needs, it may keep you and your spouse linked longer than you want. Alternatively, if you start a Chapter 13 bankruptcy and then get divorced, you may incur additional costs to separate your bankruptcy.
A Chapter 7 bankruptcy is much faster, but you should still proceed with caution in part because it may mean the loss of some assets as this is called a liquidation plan for a reason. Another consideration on what type of plan is best for you or when to file should be how well you and your spouse might work together to complete the bankruptcy.
If you would like to learn more about how to navigate the challenges associated with serious debt problems and the end of your marriage simultaneously, please feel free to visit the asset and debt division page of our Michigan divorce website.