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Can I file bankruptcy during my divorce?

On Behalf of | Jul 8, 2022 | Bankruptcy & Divorce

Both divorce and bankruptcy are difficult situations. Trying to handle the at the same time may not be in your best interests.

Experian explains trying to handle these two complex legal situations at one time may be impossible. The court in either case may decide to hold off on proceedings while the other case is in progress. Usually, a bankruptcy court will pause your case to allow a divorce to finalize.

Issues

There are various issues that may overlap in the proceedings, which is why both courts may not want them to happen concurrently. Bankruptcy and divorce involve your assets. If it is unclear what you own due to the divorce, the bankruptcy court cannot do its job. If the divorce court sees the bankruptcy court is liquidating your assets, it could cause trouble with the property division in your divorce case.

Beyond legal

Beyond the legal issues, the stress of both a divorce and bankruptcy may be too much for you to handle. It can be hard to go through either situation and trying to tackle them at one time could prove to leave you worn out and unable to move forward. It is exhausting to end a marriage and overhaul your financial situation. Most people could not handle doing both at one time.

One at a time

The best choice is usually to file for divorce or bankruptcy, wait until the case is complete, and then file for the other. You should consider your situation to decide which might be the best to file first. It can vary for different people. Make sure to consult with a professional who can walk you through making the decision.

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