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Divorce or Bankruptcy, Which Comes First?

Divorce or BankruptcyDivorce or Bankruptcy, Which Comes First?

If you are thinking about getting divorced and filing bankruptcy, you need to carefully consider which one to do first.  If your future ex-spouse will cooperate and you are jointly eligible, then it is usually better for both of you to file Chapter 7 Bankruptcy jointly while you are still married.

Why?  Because if you finish your bankruptcy before divorce, then you don’t have to worry about the judge in divorce court ordering you to pay debts because the debts are gone.  If you get divorced first, however, the marital joint debts that the court orders you to pay will survive a post-divorce bankruptcy.

If your future ex will not cooperate or you are not eligible jointly, then you can file Chapter 7 Bankruptcy after divorce (if you are eligible), but you run the risk that your ex will push your joint debt back onto you.  Note that in this situation it is not the original creditor who comes after you, but your ex.

If your ex has disappeared or is not litigious, you may calculate that the risk is worth taking and file bankruptcy post-divorce anyway.

We are a debt relief agency.  We help people file for Bankruptcy under the Bankruptcy Code. 

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