Should You File for Bankruptcy Before or After Your Divorce?
This depends entirely on the specifics of your situation of your bankruptcy and divorce. For many couples, it is beneficial to file for bankruptcy while still married in order to file a joint petition and save money on filing fees. But if you are trying to qualify for Chapter 7 — which is income based and has no payment plan — you may have too high a joint income to qualify together.
While a married person may file an individual bankruptcy, all of the income and assets of the non-filing spouse must be declared on the bankruptcy filing and may be subject to seizure by the Bankruptcy Estate.
Divorce and bankruptcy can both be life changing especially for couples who will file a small business bankruptcy. If you are facing them both, it is important to plan ahead by seeking the counsel of an experienced bankruptcy lawyer. Contact us today to arrange a free initial consultation about your bankruptcy & divorce with an attorney.