Going Through Divorce: Choosing When To File For Bankruptcy Based On Your Circumstances

Money problems can make even the strongest couples break apart. When you and your spouse are fighting about money and you have decided that it's time to end the marriage, the debt you have accrued as a couple will need to be divided up. Some couples are able to file for bankruptcy before filing for a divorce, making it easier to split up anything that is left. It is not recommended that you try to file for a divorce and a bankruptcy at the same time, as this is going to tie up any assets that you both have. Filing after the divorce is possible, but it's important to decide who is responsible for each debt of the marriage.

Filing for Bankruptcy Before Your Divorce

When you file a bankruptcy together, you save yourself a little money. You only have to pay one filing fee when you file together, and it can be easier to discharge all of your marital debts this way. If you are both amicable about waiting to file for your divorce, it can be easier to file for bankruptcy before filing your divorce papers. All of your unsecured debts can be added to the petition, and decisions can be made regarding your home and any equity you may have.

If Your File Bankruptcy During a Divorce

If you want to make your divorce more complicated, filing a bankruptcy during your divorce will do it. Any assets either of you own will be tied up, and you will have to try and figure out how to pay your current bills while some assets are frozen. Filing together makes everything difficult, and it's better to file before or after your divorce is final.

When You Wait Until After Your Divorce

It's possible that one spouse wants to file bankruptcy, while the other isn't going to. When you need to divide your debts and you are the one going to file for bankruptcy, it helps to take responsibility for as much unsecured debt as you can. If your ex is not filing for bankruptcy, it shouldn't matter what debt they take over. Do your best to negotiate unsecured debt so that you can start with a clean financial slate.

Bankruptcy is going to give you a fresh start, but you have to time your bankruptcy right if you are also getting divorced. Either file before you file for divorce, or wait until your divorce is final to file for bankruptcy. For more help, search out bankruptcy attorney services in your area.