Filing for a divorce is not an easy process. Neither is filing for bankruptcy. So what happens when you are dealing with both of these situations simultaneously? Although, it seems unlikely you would be going through a divorce and bankruptcy at the same time, it does happen. If you are currently in this situation you may be wondering what steps you should take in order to spend the least amount of money. Below are just a few things you should consider.
When You Should File What
Filing for bankruptcy before or after your divorce can make a big difference in the financial stability of both spouses. It is important to note that regardless of whether you are finally a jointly or individually that the fees are the same. However, paying expensive court costs can be a good way to save money. Also, if you file for bankruptcy together your divorce costs may be less in the long run.
The Type of Bankruptcy Matters
Your marital status does matter when it comes to which chapter of bankruptcy you are filing. Having too high of a joint income maybe make you ineligible for certain type of filings, meaning you will likely have to divorce first
Married Household vs. Single Household and Bankruptcy
It is important to find out if the state you live in will allow you to double your exemptions as spouses filing bankruptcy. If not, getting divorced prior to filing bankruptcy may be the better option. Filing together can, however, be advantageous. Less time will likely be spent in court than if you were to file separately and you will be able to split up debts like shared credit card debt, for example.