Should You Get a Divorce Before or After You Declare Bankruptcy?
Transcript:
Hi. I'm Matt McArthur at Clear Counsel Law Group. A common question that I receive is, unfortunately, should I get divorced before I file for bankruptcy or should I get divorced after I file for bankruptcy? If we're filing for bankruptcy and we both need to ... My ex and myself need to file for bankruptcy should we do it together and should that be before or after we file for bankruptcy?
As we know, many cases in which individuals are facing marital difficulties are often associated or accompanied with financial hardship, so we see a lot of crossover between divorce law and bankruptcy law. This is a very common question that I come across on a regular basis. The answer to this question is it depends. It depends on the individual situation.
Typically speaking, I would say just as an efficient use of your own time and energy and efforts it makes sense for a lot of people to file bankruptcy together before the divorce. They can get a clear discharge that eliminates any dischargeable debt before they file for bankruptcy and then they can go on their separate ways and obtain a truly fresh start with no debts following them afterwards.
A situation in which an individual may wish to file for bankruptcy after they've been divorced might be where a married couple together makes too much money in order to qualify for a Chapter 7 bankruptcy and by getting divorced if they're going to get divorced anyway, from a planning and timing perspective it may make sense to get the divorce, go into separate households where there's going to be separate financial situations, where the income is separate, and file for bankruptcy once you have separated; the reason being is that usually this result in a situation where each individual separately could qualify for a Chapter 7 bankruptcy if they're both working, but together they may not file for Chapter 7 bankruptcy if their income is too great.
The answer is that it depends on your situation. There's a host of other factors that may influence your decision as to whether or not to file before or after a divorce. If you're thinking about getting a divorce and you're facing financial hardship, please come and see me, Matt McArthur. I'm an experienced bankruptcy attorney. I have a lot of experience with this particular issue and I'd be happy to discuss your different options with you, inform you with all of the information that you would need to make the best decision for your situation. Hope to hear from you soon.
