Bankruptcy and Divorce: When You are Filing for Both

A lot of times, a person will reach a point in life where he or she is ready for a change and a fresh start in more ways than one. This could lead someone to be filing for both bankruptcy and divorce at around the same time. If you find yourself in this situation, you’ll want to be careful about the order in which you file for what in order to benefit yourself as much as possible.

To start off with, it is good, general advice to file for bankruptcy first and to get that over and done with before proceeding to file for divorce. The reason for this is that, in many cases, filing for bankruptcy while you’re in the middle of a divorce will greatly delay and drag out the divorce. Thus, it’s a lot better and easier to take care of the bankruptcy first and then the divorce.

Not only is it typically considered smart to file for bankruptcy first, you may also want to consider filing jointly with your soon to be ex-spouse. This way, your debt can be handled all together through one simple bankruptcy case, often increasing exemption amounts where applicable and eliminating unsecured debt, which makes for easier divorce proceedings.

Of course, there are exceptions to every rule, and you may want to think about filing for divorce first if your marital income levels will be too high to qualify you for your desired type of bankruptcy.

The key here is to do what is right for you and your particular situation. If you’re still not sure exactly what that is in your case, then don’t hesitate to contact a lawyer for guidance on when to file what.