Divorces and bankruptcies sometimes coincide. If you’re in such a situation, you may decide to file for Chapter 7 bankruptcy before the divorce or Chapter 13 afterward. A bankruptcy lawyer will help you evaluate your circumstances and determine what’s in your best interests, but here are a few factors to consider to get started. 

A Guide to Divorce & Bankruptcy Timing

Filing Chapter 7 Before Divorce

In some instances, filing a Chapter 7 proceeding before the divorce can be advantageous. The Chapter 7 process is typically completed and your debts are discharged within six months of filing, giving you a fresh start quickly. The filing fee is the same for filing an individual or joint petition, which can save money if you and your spouse both need to file bankruptcy. If you have few assets and but large amounts of unsecured debt — such as credit cards and medical bills — you may find this is the right avenue to getting back on your feet.  

Filing Chapter 13 After Divorce

Chapter 13 requires making payments to creditors for three to five years, which can delay your divorce process. Still, if you want to save property from repossession, such as a home or motor vehicle, and have a reliable source of income, working with a bankruptcy lawyer for Chapter 13 might be a wise choice. If your divorce requires you to pay child support, back taxes, or student loans, those will be included in the plan. 

Other Issues to Consider

Filing bankruptcy usually won’t stop child custody proceedings. However, the automatic stay will halt all property division actions. Filing bankruptcy before the divorce may help eliminate or resolve property and debt disputes. With fewer issues to address, it can be easier to make settlement agreements.  

No matter what filing type you need, a lawyer can help you. Bankruptcy lawyer and family law attorney Donald K. Swartz, the founder of Swartz Law Office LLC, offers experienced and compassionate representation. Based in Batavia, OH, this family lawyer has served clients in and around Clermont County since 2011. He previously worked for nearly 10 years at a large Cincinnati firm. To find out how his office will assist you, visit their website. Call (513) 732-0900 to schedule a bankruptcy lawyer consultation.