When considering divorce and
bankruptcy, it is crucial to time these actions in a way that best makes sense for
your circumstances. Generally, it is most beneficial to file for bankruptcy
first since filing for both simultaneously delays any distribution of
assets or liabilities.
Filing for bankruptcy first may be difficult if you are on hostile terms
with your soon to be ex-spouse, but ideal if you are still on amicable
terms. If you file jointly for bankruptcy, all of your debts can be addressed
in one case, wiping out any joint debts you may have incurred together
and increase your exemption amounts. Additionally, bankruptcy eliminates
any contracts neither spouse wants, such as costly car loans.
Completing this step first will also resolve or simplify issues of debt,
property division, and even lower the cost of your divorce. Ultimately,
filing jointly can save time since it eliminates most or all of the unsecured
debt, setting the stage for smooth negotiations. This will also ensure
that you do not experience any delays related to any pending bankruptcy cases.
Aside from the financial aspect of it, and potential time saved, taking
care of a bankruptcy first will also relieve some of the stress either
party may have due to their financial troubles. Divorce is already a difficult
time on its own, so removing one major stressor can greatly help, and
allow both parties to begin the divorce process with some peace of mind.
At Wadhwani & Shanfeld, we have a team of experienced and dedicated
lawyers who can help find effective solutions to your debt. If you are
unsure if bankruptcy is the best course of action for you, we can help
you determine if other options are more suitable. With us, you can be
confident that your rights and interests are in good hands.
Call us for a risk-free initial consultation at