Filing for divorce and bankruptcy are two of the most serious court actions you might ever take. Before filing, it’s wise to understand the processes and how to time your actions. Having the information below might help you plan and take the right legal steps in the proper order.

Which One Should You File for First?

Filing for bankruptcy first is often the better choice because you can file a joint petition. Doing this together costs less than separate petitions, and wiping out your debts as a couple makes it easier to resolve financial issues in the divorce process. However, depending on the type of debt owed, it might be better to get a divorce first.

What Happens When You File Chapter 7 Bankruptcy?

Under Chapter 7 bankruptcy, called straight bankruptcy or liquidation, you don’t make any payments to creditors. Your unsecured debts, such as credit card and medical bills, are discharged. Generally, the entire process is finished within six months, so you can proceed with your divorce more quickly.  However, there are income requirements to qualifying for Chapter 7.

What Happens When You File Chapter 13 Bankruptcy?

Filing under Chapter 13 starts a process that lasts from three to five years. You submit a plan to the court in which you pay creditors, and the court discharges any remaining debt when the plan is finished. If you and your spouse are trying to save a home you own jointly or other property, such as rental real estate or motor vehicles, filing a joint petition allows you both to do so.

Bankruptcy and divorce are life-changing experiences, but with sound legal advice and representation, you can conclude them successfully. Since 1965, Zellar & Zellar, Attorneys at Law, has been helping Columbus, OH, residents resolve their financial problems with skill, professionalism, and compassion. To learn more about their Chapter 7 and 13 bankruptcy services, visit their website. Call (614) 257-1643 to schedule a consultation.

This article is intended to provide general information and should not be construed as legal advice or in creating an attorney-client relationship.