What Should Come First: Bankruptcy Or Divorce?

What Should Come First: Bankruptcy Or Divorce?

Dealing with bankruptcy or divorce can be difficult. It can be even harder if you have to deal with both at the same time. You may be wondering whether you should file for divorce or bankruptcy first. There is no clear-cut answer. It depends on your situation. However, the attorneys at New Beginnings Family Law, P.C., have a lot of information that will help you decide.

When to File for Bankruptcy First

It is important to note that bankruptcy may cause your divorce to take a lot longer. If you and your spouse have already come to a mutual agreement on everything, then you may want to file for bankruptcy first. Filing for bankruptcy can be beneficial because it can help you eliminate the debts that you and your spouse have accumulated together.

If your spouse makes more money, then you may have an easier time qualifying for Chapter 7 Bankruptcy. Most people will be able to complete Chapter 7 bankruptcy within about three months. However, Chapter 13 Bankruptcy will make things more complicated. Chapter 13 requires that you set a payment plan for getting rid of the debts. You and your spouse could both be responsible for making the payments.

When to File for Divorce First

If you make more money than your spouse, then it is possibly best to file for divorce first. This is also a good idea if you and your spouse are arguing over debts. Furthermore, New Beginnings Family Law, P.C., recommends that you file for divorce if you and your spouse’s combined income is too high to qualify for Chapter 7 Bankruptcy.

There are some things that you should keep in mind if you decide to file for divorce first. If you have to pay child support or alimony, then it is a good idea to know this amount before you file for bankruptcy. The child support or alimony amount can affect the bankruptcy proceedings.

If you have questions about filing bankruptcy during a divorce, you should contact New Beginnings Family Law, P.C., and speak with one of our experienced attorneys.

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