Money troubles can ruin a marriage. If you and your spouse are going to file for divorce and one or both of you wants to file for bankruptcy, timing is going to be important. If you file bankruptcy together, you can get rid of your marital debt before you try to divide up anything left in the divorce. Filing for your divorce and bankruptcy at the same time is not a good idea, because it gets too complicated. If only one party wants to file for bankruptcy, you will need to file for the divorce first and wait for it to be over. Dividing up your debt can become critical to your financial future if only one of you is filing for bankruptcy.
When You Want to File Bankruptcy Together
Filing bankruptcy before you file a divorce has a number of benefits. You will get all of your debt out in the open so that both of you know exactly what you are dealing with. When you file together, you only have to pay one filing fee. This fee doubles if the two of you file separately. Once you file for bankruptcy and it is accepted by the court, you will then be able to file for divorce and come to an agreement about anything that might be left.
If Only One Party Wants to File Bankruptcy
If you are the only one that wants to file for bankruptcy, it will be much easier to wait until your divorce is complete. As you divide up your marital debt, try to take responsibility for the debt that can be written off in a bankruptcy. If your ex isn't going to file, there should be little argument about what debt each of you takes on. Student loan debt and income taxes are two debts that can't be discharged, and it will benefit you if you can take control of other debt.
Filing for a divorce is a stressful time. When you and your spouse are calling it quits, figuring out finances and dividing up your assets is one part of your divorce. If you want to file for bankruptcy, try to access the debt that you can write off. If you try to file bankruptcy and your divorce at the same time, this is going to tie up money that you might need to pay for living expenses. You will need to file together before your divorce, or after the divorce is final to make it all less confusing.
To learn more, contact a bankruptcy law attorney.