Bankruptcy And Divorce | What You Need To Know About How One Could Affect The Other

Financial hardship and divorce are quite notorious for going hand in hand. Therefore, if you are either planning for a divorce or you have already filed, it may not be so out of the ordinary to also have the need to file for bankruptcy around the same time. While both of these legal processions are completely different from one another, going through both at the same time will definitely be a stressful situation. If you are facing both divorce and bankruptcy, you are bound to have a few questions. Here are a few of the most common questions about bankruptcy and divorce and the answers you will want to know.

Is it better to file for bankruptcy before the divorce or vice versa?

If at all possible and you know divorce is imminent, filing for bankruptcy first with your current partner is almost always the more logical solution.  Financially speaking, filing for bankruptcy jointly will be less expensive, as the fees for one person filing will pretty much be the same as they would be in a joint bankruptcy filing. Plus, if you file bankruptcy after the divorce, it will likely mean you will both have to pay attorney's fees for representation. Furthermore, the bankruptcy can help you go ahead and settle joint debts that would otherwise be an issue through the divorce process. 

But won't you have to wait a while for the bankruptcy to be final?

In most cases, bankruptcy is a pretty quick and painless process that really does not take a long time to get to the final stages. In fact, you will probably see your bankruptcy finalized within a few short months, specifically if you are going for a basic chapter 7 filing status. Therefore, even if you do put off filing for a divorce to get done with bankruptcy first, you will not have to wait for too long and it will be well worth it in the end. 

How will still being married affect exemptions through the bankruptcy?

Being still married will offer you the advantage in most cases to actually be able to claim twice as many exemptions in your case as you would if you were to file single. For example, if you are only allowed to claim a certain vehicle as an exemption on the bankruptcy, being still married may mean you can qualify for two, as both of you will need transportation. 

Click here for more information about your bankruptcy options and how a potential divorce may affect them.

About Me

Tips for Living a Healthy Financial Life

Have you ever felt like you were running in circles? After filing for my second bankruptcy, I felt that way. It seemed like I was stuck and could not figure out how to get on the right road to financial health. As I stood outside of the courtroom after my debts were discharged, I decided that I would never again be in that position. I started researching online and found that so many others were in the same predicament. I knew then that I not only had to help myself, but also others. I created this site to help others get out of debt and stay that way.



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