Will filing bankruptcy affect my divorce case? Utah Bankruptcy
Filing for Utah bankruptcy during a Utah divorce can have both positive and negative effects on your Utah divorce case, and the specific impact will depend on the circumstances of your situation.
- Debt relief: If you and your spouse have joint debt, filing for bankruptcy can provide relief from this debt and allow you to divide assets more equitably in your divorce settlement.
- Automatic stay: The automatic stay that is put in place when you file for bankruptcy can temporarily halt any collection actions or wage garnishments against you, which can provide some breathing room during the divorce process.
- Property division: In some cases, filing for bankruptcy can affect the way property is divided in a divorce. For example, if you file for Chapter 7 bankruptcy, your assets may be liquidated to pay off creditors, which could impact the assets available for division in your divorce settlement.
- Delay: Filing for bankruptcy can slow down the divorce process and add additional time and complexity to an already difficult situation.
It’s important to work closely with your Utah divorce attorney and a Utah bankruptcy attorney to understand the specific effects of bankruptcy on your divorce