Going through a divorce is one of the most grueling experiences that a person can go through. Families and finances can often be the most damaged at the end of a divorce case. What happens when you’re going through a bankruptcy and divorce at the same time? Fortunately, there are ways to handle this situation.
Should you file for bankruptcy before filing for divorce?
It can seem like it’s a good idea to file for bankruptcy before a divorce. This often stems from the belief that it would be easier because nothing has yet changed between yourself and your spouse. Some professionals recommend that you file for bankruptcy after you’ve gone through your divorce as it may be much easier to qualify for Chapter 7 bankruptcy with a lower income.
What situations make sense for you to file before a divorce?
There are rare cases when you should file for bankruptcy before you divorce. One of the biggest factors to consider is that you also split any marital debts you incurred during the marriage when you divorce. This could mean that any debts you or your spouse had are split in half. If you eliminate those debts before divorcing, you might be able to keep more of your assets.
Credit after divorcing
The reality of going through bankruptcy, whether it’s before or after a divorce, is that your credit score will take a hard hit. This can become much more difficult if your spouse does not continue with their payments and actively causes issues with your finances.
If issues arise, it can be difficult to handle both bankruptcy and divorce at the same time. This is why it may be important to consult a legal team before filing for either issue.