If you file for bankruptcy while you’re going through a divorce, what happens? What about if you file for bankruptcy and then get divorced afterwards? These are questions that we encounter sometimes as bankruptcy lawyers. The answers to these questions really depend on your unique situation, but we can help you figure out these answers.
If you’re filing for divorce and also need to file for bankruptcy, you may want to file jointly or individually, depending on your types of debt. If you have debts together, it might be in your best interest to file jointly. However, if you have more exemptions that a joint filing allows, or you have individual debts, you may want to file on your own.
It’s also important to note that filing for bankruptcy will affect the property division process that takes place during a divorce. For this reason, it’s typically better to file for bankruptcy before you file for a divorce. Also, because of the property division process, chapter 7 bankruptcy is usually more ideal than chapter 13, since chapter 7 discharges most debts in 3-6 months, while chapter 13 can take 3-5 years. The sooner your debts are discharged, the sooner you can file for divorce.
Keep in mind that if you file for bankruptcy, you are still responsible for payments such as alimony and child support. Filing for bankruptcy before, during, or after a divorce, will not remove your financial obligations for these types of payments.
If you’ve already filed for chapter 13 bankruptcy, and you decide to get divorced while you’re in the repayment process, you can decide to restructure your bankruptcy plan, or you can continue to pay off your debt as planned. You might also choose to wait until the repayment period is over before filing for bankruptcy.
If you’re thinking about filing for bankruptcy and also filing for a divorce, we can help you navigate this difficult situation and find the best solution for your financial future. Give the bankruptcy lawyers at Craft Law Offices in Greenville, NC or visit our Facebook page to contact us.