Many people who are having financial problems and facing the end of their marriage are wondering whether they can file for divorce and bankruptcy at the same time. You can file for bankruptcy during the time that you are going through a divorce. However, it is important to note that you could complicate things by filing for bankruptcy during the same time that you file for divorce.
All of the property that you own becomes the bankruptcy estate’s property when you file for bankruptcy. The judge will not be able to divide or distribute the assets until after the bankruptcy has been completed. As a result, you can expect the divorce process to take longer if you are going through bankruptcy at the same time.
It is not wise to file for bankruptcy and divorce at the same time. You may be wondering whether it is better for you to file for divorce or bankruptcy first. In most cases, it is best to file for bankruptcy first. You and your spouse will be able to eliminate joint debts together. The divorce will be able to move forward without delays because of bankruptcy.
If you file for Chapter 7 Bankruptcy, then you will probably be able to complete the process within four months. You and your spouse will not have to worry about fighting over unsecured debt because it will be eliminated. Keep in mind that if you file for Chapter 13 Bankruptcy, then you and your spouse will both have to make repayments.
However, it is sometimes best to file for divorce first. Some couples’ joint income is too high to file for Chapter 7 bankruptcy. You may still be able to file for Chapter 7 bankruptcy if your income is significantly lower than your spouse’s.
It is a good idea to speak with a bankruptcy attorney before filing for divorce. An attorney can help you decide whether it is best to file for bankruptcy or divorce first based on your situation.