Should I File for Bankruptcy or Divorce First?

 Posted on February 07, 2023 in Bankruptcy And Divorce

Financial challenges and divorce often go hand-in-hand. This is nothing to be embarrassed about. It is a common reality that once times get tough, couples learn that their approaches to adversity do not meld in healthy and life-affirming ways. As a result, many American spouses find themselves facing the need to file for bankruptcy and to file for divorce simultaneously.

However, for better and for worse, couples cannot combine their divorce and bankruptcy cases. They must choose to either file for bankruptcy or to file for divorce first. If you and your spouse are facing this dilemma, carefully weigh the pros and cons of each approach before committing to a plan of action.

Filing for Bankruptcy First

If you and your spouse can remain legally married for a time, it may be advantageous to file for bankruptcy before initiating the divorce process. This approach will allow you to either restructure or eliminate marital debts that you would otherwise need to divide and conquer separately after the finalization of your divorce. As divorce cases take time to resolve, waiting to address your debts could result in late fees, mounting interest burdens, and a greater debt load overall.

It is also worth noting that filing for bankruptcy jointly will save you and your spouse money, as you will only need to incur one set of filing and legal fees.

Filing for Divorce First

If you cannot wait months or years to divorce, you may need to file for divorce before filing for bankruptcy individually. Bankruptcy is a stressful process. If you and your spouse cannot get along well enough to manage a bankruptcy filing jointly, navigating this process as a single filer may be your only viable option.

You may also want to consider filing for divorce first if you will only be eligible to file for Chapter 7 bankruptcy relief when filing as a single wage earner.

Contact a Skilled San Antonio Bankruptcy Lawyer Today for a Free Consultation

Whether you opt to file for bankruptcy before or after you file for divorce, know that you do not need to navigate the complexities of this process alone. The dedicated San Antonio, TX bankruptcy lawyers at Law Offices of Chance M. McGhee can handle the “heavy lifting” of your bankruptcy case so that you can focus on managing the major life transitions that you are currently facing.

Schedule a confidential, no-cost, risk-free legal consultation session today by submitting a contact form on our website or by calling us at 210-342-3400. Once our team understands the nuances of your unique situation, we will provide you with objective, personalized legal guidance concerning your need to file for bankruptcy. We look forward to assisting you.  

Source: 

https://www.experian.com/blogs/ask-experian/how-to-handle-bankruptcy-and-divorce-at-the-same-time/