A divorce can be a challenging experience in your life. It can be even more stressful if you are going through bankruptcy at the same time.

Whether you should file for bankruptcy before or after your divorce will depend on the situation. You could go through both at once, but some jurisdictions will focus on one point over another.

When To File For Bankruptcy Before a Divorce

  • You can file for bankruptcy first if you have substantial marital debts. A bankruptcy can cancel out some of these debts that would be divided during the divorce proceedings.
  • Filing first is also best if you have various properties that might be divided between you and your partner. By liquidating some of these assets, the divorce process will be easier to manage and less expensive.
  • You can also file before the divorce if you have concerns about legal fees. Filing a joint bankruptcy will be more affordable than if each person filed separately.

When To File For Bankruptcy After a Divorce

  • You can file for divorce first if you could qualify for a Chapter 7 declaration after the divorce. You will qualify for Chapter 7 if your income is below the median in your state. It is easier to get here if you don’t earn as much money as your partner.
  • You may also have an easier time paying off a Chapter 13 declaration after a divorce, as the amount you would spend each month in the repayment process will be minimal. This point works if you earn a consistent income and have enough money on hand to handle some of these expenses.

Check the total values of your debts and assets before deciding when to file for bankruptcy. Look at the types of debts you have and your income to see what can work the best.

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