Things have been pretty rough for you lately. Your marriage and your finances both ended up on the rocks at once. It’s an extremely unfortunate coincidence, but it can happen through no fault of your own.
The off-the-charts anxiety and anguish that these situations cause you are undeniable. You may also be wondering if it’s a good idea to file for bankruptcy and get divorced simultaneously. How will one affect the other, if at all? Is it more practical to finalize one first, then work on the other?
What should you do?
Your marital split and your bankruptcy probably will not be going forward concurrently. “If both cases are pending simultaneously,” according to one source, “bankruptcy is typically suspended until the divorce court apportions marital debts and assets to each party.”
You need to determine which case to deal with first. That decision may depend upon laws where you reside that govern these matters as well as your personal circumstances.
Consider the pros and cons of both scenarios
Think about the realities of each situation before you plunge in. You can opt to get the divorce settled first if doing so will make it easier for you to meet the income requirement for a Chapter 7 bankruptcy. Otherwise, it may be easier to proceed with the bankruptcy first, since that will make the division of debts and assets during your divorce much easier.
These matters are intricate and have long-term ripple effects. You’ll want to make certain that you take care of these two major issues appropriately – and in a way that protects your future.