Divorce and Bankruptcy in Las Vegas

Why are bankruptcy and divorce often associated with each other? Because divorce is one of the leading causes of bankruptcy, along with unemployment and medical debt.

A common myth is that bankruptcy is a cause of divorce. But that’s really not accurate. Financial problems may be a contributor to divorce. But bankruptcy is actually a path out of financial problems. So if anything, the bankruptcy process would likely be saving more marriages than it causes.

Another reason that divorce and bankruptcy are often associated is that divorce leads to difficult financial situations, and bankruptcy is often the most practical solution. For example, both spouses may be employed and financially in good standing. However, if divorce means that one spouse will get the house and have to pay the full mortgage themselves, this may put them between a rock and a hard place. Especially in the current Las Vegas housing market.

Bankruptcy is often used in situations like this to help facilitate the divorce process and enable the spouse to get through the divorce with no debts hanging over their head afterwards. That said, bear in mind that alimony and support payments cannot be wiped away in a bankruptcy filing.

Another common concern around bankruptcy and divorce is whether one spouse can file for bankruptcy in Las Vegas without the other spouse filing. The short answer is yes. But the more important answer is, it depends on your circumstances. It’s a strategic question that is best discussed with an experienced Las Vegas bankruptcy attorney.

If you have questions about divorce and bankruptcy, please contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation by calling 702-745-8584.

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