Should Bankruptcy Be Done Before or After a Divorce?
Very good question! It does depend a lot on what debt you are looking at, at what you will receive in the divorce. Let me give you the information I have looked over, read, and come across over the bankruptcy before or after a divorce.
I will tell you it will be cheaper for you both to file as a couple then it would separately. I will also tell you that divorce is a hard time in anyone's life, and it can be very hard for one to get out on their own. Bankruptcy is not the last place to turn when you are having problems getting settled after your divorce, and finding a way to make it, there are companies now that will work with you to combine everything and then you send in one payment, So bankruptcy before a divorce or after a divorce, IS not your last option, remember that. One it does go on your credit record, and for about 7 years even more, it may be harder for you to move on from bankruptcy then it would from the divorce. So I do say always explore your options, before choosing a way out of them. So now that I have give you that information and you look around at the finances and its the only way to do it, is bankruptcy.....yes it is cheaper to file as a couple, so here is maybe the tricky part for you and your spouse. Do you both know the divorce is coming? Is it something that you both have sit down and talked about, along with all the debt? Its important that if you are going to be filing for bankruptcy before your divorce, you should at least be open with your spouse, because now they will be going out on their own and need to get credit also. So never do the bankruptcy before divorce without the other spouse knowing you are going to get a divorce, then you both have to enter the world...on your own.
I have done another divorce blog on bankruptcy during divorce, that should also be helpful. t does give you so me information if a spouse decided to file bankruptcy during a divorce, they can not get out of a lot of the debt or put it on you, that is considered non dischargeable during a divorce. So one of the best things to do if you are getting a divorce, talk to your spouse, especially if children are involved.