Family Law Blog

Should You Divorce Before or After Filing Bankruptcy?

Friday, October 04, 2019

Finances can put a major strain on your relationship with your spouse. If things get bad enough, it may even lead to your divorce, although there is usually more than just stress about the money involved in this decision. However, often divorce and bankruptcy go hand in hand. Doing both really is like starting a whole new life afterward, but the question remains, what should be done first?

Type of Bankruptcy

In truth, the answer is usually highly dependent on which type of bankruptcy you are going to file. If you choose the standard Chapter 7 bankruptcy, this is typically resolved in a few months. It is best to do this first, discharge your debts as a married couple, then get a divorce. It saves money on lawyer and filing fees. Unfortunately, you will want to talk it over with a bankruptcy lawyer first as your married income could be too high to qualify for a Chapter 7 bankruptcy. In this case, it may be better to get divorced first.

Chapter 13 Bankruptcy

However, if you choose Chapter 13 bankruptcy, this can last several years as you work on a repayment plan. This would mean you would need to put off divorce for years, and that might not be an option. If you get divorced while filing bankruptcy, then it adds a further layer of complexity. In this case, it would be better to get a divorce first and then file your Chapter 13 bankruptcy.

Learn More About Divorcing Before or After Filing Bankruptcy

If you are about to get divorced or file bankruptcy, you are about to enter a complicated time in your life. Unfortunately, you will need the advice of two lawyers. For your divorce, contact us today. Jamra & Jamra are dedicated family law attorneys that can help guide you down the best path to help your divorce and other family law issues go as smoothly as possible.