What happens if you file for bankruptcy first in a divorce?

If you file for bankruptcy first, you and your spouse will only have to pay one filing fee and can share the legal fees of your bankruptcy attorney. Filing for bankruptcy first can also make the property division portion of your divorce case simpler.

When is it good to file for divorce first?

Filing for divorce first might make sense if your joint income is too high to qualify for Chapter 7 bankruptcy. For example, if you make significantly less than your spouse then you may be able to qualify for a Chapter 7 to get rid of debt in your name without a Chapter 13 payment plan.

When is the best time to file bankruptcy?

If your divorce is filled with conflict, it may be best to wait until the divorce is final before you file for bankruptcy. This can allow you to seek a discharge of your debts without having to depend on your spouse working together with you in your bankruptcy case.

Can a couple file for bankruptcy at the same time?

A joint bankruptcy filing requires cooperation between the spouses, but it can significantly streamline the divorce process, reducing legal fees and time commitment for both parties. In many states, a couple filing for bankruptcy can keep a larger portion of their assets than they would when filing for bankruptcy individually, after a divorce.

When to file for bankruptcy with your spouse?

If your spouse starts bankruptcy proceedings before the judge finalizes your divorce, you might want to think about jointly filing for bankruptcy, especially if the majority of your debt obligations are in both your names.