You juggle having marital and financial problems at the same time. Divorce and bankruptcy offer you a way out of your struggles, but you do not know which one to prioritize.
Experian offers tips for balancing the legal aspects of divorce and bankruptcy. Learn how and when to use both to set yourself up for success.
Should you file bankruptcy before divorce?
While you may file for divorce and bankruptcy together, one takes precedence over the other. If both pend at the same time, expect to put bankruptcy on the back burner. Navigating divorce and bankruptcy simultaneously may take a toll on you. Which legal matter you handle first depends on your financial health and state law.
When should you file for bankruptcy before getting a divorce?
If you want a better chance to knock out joint marital debts, file bankruptcy first. If you and your current spouse get along, you may file for joint bankruptcy before dissolving your marriage. Declaring bankruptcy together requires you to work as a team, so determine whether you have the energy and will to cooperate with your soon-to-be-former spouse.
When should you file for bankruptcy after getting a divorce?
Whether you claim bankruptcy before ending your marriage depends on whether you want to file Chapter 7 bankruptcy. You may cancel all qualifying debts when filing Chapter 7. To qualify for this chapter, your income cannot exceed Florida’s median income. If you or your partner acts as the main breadwinner in your marriage, divorcing before filing bankruptcy helps you both meet Chapter 7 bankruptcy requirements.
By getting all the facts, you know how to plan your post-divorce financial life.