Financial strain is a common factor that leads to divorce. When the financial situation is dire, you may come to realize that you need to file for bankruptcy. At the same time, the marriage might be too far gone to continue it. When this occurs, you have some serious decisions to make.
You can’t handle both cases at the same time because things will become far too complicated. Instead, you’ll have to figure out which one to do first. Once that one is done, you can move on to the other one.
A primary consideration when you’re trying to figure out what to do is whether you can handle being married while the bankruptcy completes. In the case of a Chapter 13 bankruptcy, you’d have to deal with remaining in the marriage for three to five years. A Chapter 7 bankruptcy is much faster.
A bonus of filing the bankruptcy first is that you and your ex will both have a fresh financial start when you embark upon the single life after divorce. Still, the lack of viable credit might make this a challenge. But at least there won’t be massive debts hanging over your head.
If you have to file for divorce first, be prepared for a challenge when it’s time to file bankruptcy. This might not be as much of an issue if you and your ex are both planning to file for bankruptcy.
When you need to file both cases, you can discuss the matter with an attorney who is familiar with both, so you can find out what’s best for your situation. This can help you develop a solid plan.
