Unfortunately, financial problems in your marriage may be leading to a divorce. Money problems and marital difficulties often go hand in hand. If your financial calamity is causing your marriage to end, you may be wondering about the logistics of filing for bankruptcy along with divorce.
The truth is that divorcing will likely not make your financial issues go away. In fact, splitting up and living on your own will likely make you struggle more with your finances. Things may go more smoothly for you if you declare bankruptcy before the divorce. Here is why.
Filing jointly comes with many benefits
If you and your spouse file a joint bankruptcy, you may be able to save a lot of money on fees. Joint bankruptcy will also likely save time in comparison to filing during the divorce case. Filing a joint case before the divorce proceedings begin may also reduce stress and make the property division process go more smoothly.
Eliminate liability for joint debt
Declaring bankruptcy before the divorce also means your responsibility to pay any joint debt will be relieved. If you are liable for your mortgage, credit cards or loans, then filing for bankruptcy will immediately erase your liability, so you will not need to worry about incurring a massive amount of joint debts.
Get ahead of your spouse
Think about what may happen if your spouse decides to file for bankruptcy during your divorce. If this occurs, then you may be responsible for all the debt. If you suspect your soon-to-be ex-spouse is thinking about filing for bankruptcy, you should think about either filing a joint case or filing before he or she does.
Filing for bankruptcy may make sense for you, especially if you qualify for Chapter 7 bankruptcy. However, you should always talk to an attorney about your unique situation to determine the timing of your filings.