When Does It Make Sense to File for Bankruptcy Before Divorce? A main advantage to filing bankruptcy before divorce is the potential for cancelling joint marital debts that would otherwise have to be divided up as part of divorce proceedings, and then tackled separately in each spouse’s bankruptcy.
Can I file bankruptcy while going through divorce?
Answer. If you have a pending divorce case, filing for bankruptcy will not affect actions to establish custody or child support. But it will stop the ongoing divorce proceedings related to division of property. Read on to learn more about how filing for bankruptcy can affect your pending divorce.
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 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.
How long does it take for a couple to file for divorce?
The time period varies by state law but is commonly 30 days. Couples may also file a joint petition for divorce in many states. The date they file together is the date of filing in this situation.
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.
