Law Office of Paul Petrillo
Contact Us Today 603-635-4149
Menu Contact

Should you file for bankruptcy first or divorce?

Although divorce is notorious for using up all your money, your financial problems can start long before then. In fact, they may be the reason for the divorce. What should you do when you face the end of your financial means and your marriage?

The choice of which to file first depends on the following factors and your specific circumstances. You can talk to an attorney experienced in both family law and bankruptcy for professional guidance on which is best for your situation.

Bankruptcy type

Do you want to file for Chapter 7 to discharge debt but do not qualify due to having a high joint income? If you do not want to file for Chapter 13, which involves a modified repayment plan, then you may have to divorce first to be eligible for Chapter 7. However, if you want the benefits of Chapter 13, such as preventing home foreclosure and wage garnishment, then remaining in your marriage may be better.

Bankruptcy fees

The cost to file on your own or as a couple is no different, so going through bankruptcy before a divorce will save you money on filing fees and credit counseling classes. The savings may be worth remaining with your spouse for a little longer.

Division of debt

When you divorce, you not only have to divide your assets, but also your debts. Eliminating as much debt as possible beforehand and determining exempt property can make asset division much easier and less contentious. Furthermore, divorce does not protect you from creditors if your ex does not pay his or her debt.

Ability to cooperate

None of the benefits of filing for bankruptcy first will matter if you and your spouse cannot cooperate throughout the process. In fact, if your soon-to-be-ex is abusive or hostile, it may be best to wait until your divorce is over to deal with debt.

No Comments

Leave a comment
Comment Information

Start Your Case Today

Whether you have a family law issue, an estate planning question or are considering bankruptcy, I can help you find a sustainable solution that provides relief and hope. Schedule your consultation at my Nashua, New Hampshire office today by calling 603-635-4149 or by sending us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

email us for a response
Law Office of Paul Petrillo