Divorce and bankruptcy are two of the most difficult situations for any resident of Louisiana. If you’re considering both, it’s important to know your options and when you should file for bankruptcy.
Filing bankruptcy before or after divorce
If you have tried other ways to relieve your debt or find a satisfactory timeline for paying it back but failed, filing for bankruptcy is wise. However, if you’re also considering filing for divorce, you should know when you can do one versus the other. It’s possible to file for bankruptcy before or after you have filed for divorce. There are advantages to filing bankruptcy before or after as well.
Filing bankruptcy before divorce can help the property division aspect easier. You can have many of your unsecured debts discharged, which benefits you and your spouse as you won’t be responsible for paying them. The court will not factor those debts into your divorce. The creditor who is owed the debt also won’t be able to continue seeking repayment after the discharge.
If you file for bankruptcy after divorce, it’s better to file Chapter 13. This helps you to hold onto more of your property. However, you can only file if your income is too high to file Chapter 7 bankruptcy. If your divorce is contentious, filing after the divorce can help you to discharge your debts independently of your spouse.
Is it possible to file bankruptcy and divorce at the same time?
You shouldn’t file bankruptcy and divorce simultaneously. Doing so might delay both cases and complicate things. Having issues like alimony and child support in your divorce case can impact your bankruptcy case by slowing it down. The judge will also not be able to decide on property division in your divorce until after your bankruptcy case is finished.
Deciding whether to file bankruptcy before or after you file for divorce depends on your situation. Consider your options and seek professional help if necessary.