Ending a marriage is a major life transition that can affect net worth significantly. As a result, many individuals on the verge of divorce are also interested in eliminating debt with the help of a bankruptcy law attorney. If you’re interested in this process but are unsure how to proceed, the following information will help. 

A Guide to Bankruptcy Law & Divorce

Filing Simultaneously 

While it’s technically possible to file for bankruptcy and divorce at the same time, it’s not recommended. If you’re in the midst of divorce proceedings when you file for bankruptcy, the divorce court won’t be able to divide your assets until the bankruptcy is complete, needlessly complicating and delaying your case. Likewise, child support issues or unpaid alimony can hold up bankruptcy. One process should be fully completed before the other. 

When to File Bankruptcy First

Declaring bankruptcy before filing for divorce can simplify the family law proceedings considerably provided you’re filing for chapter 7. If you’re eligible for chapter 7 as a couple, taking this route will allow you to discharge applicable debts before commencing with the divorce. Filing a joint bankruptcy petition may also help you retain more assets, since married couples are often entitled to double exemptions under bankruptcy law. 

When to File for Divorce First 

Those who plan on declaring chapter 13 should typically wait until after their divorce has been finalized. Chapter 13 requires petitioners to implement a three- to five-year remuneration plan, during which they’ll pay back some or all of their debt. If you establish this payment plan as a couple, you’ll have to reorganize it should you later file for divorce. This will only serve to complicate the property division portion of the divorce proceedings. 

If you need to file for both bankruptcy and divorce, turn to Gilbert P. Kaback Attorney at Law. Practicing out of Colchester, CT, he’s successfully represented clients for more than two decades. As an accomplished bankruptcy law attorney and divorce lawyer, he’ll help you navigate these complex proceedings with ease. He’ll defend your best interests with compassion and expertise in these challenging cases. He’s also well-versed in probate law, criminal defense, and real estate law. To request an initial consultation, call (860) 537-0874 or reach out on his website.