Deciding to end your marriage and coming to terms with your debt are both sober realizations. In some cases, it makes sense to handle them at roughly the same time. If you’re wondering whether to move forward with divorce or bankruptcy first, take advantage of this simple guide.

Filing for Bankruptcy First

If you file for bankruptcy first, you can file jointly with your spouse. This means both of your debts and assets will be combined before they're eliminated or sold off.

This will save you time down the road, as there will be fewer items to divide up after bankruptcy. This also means the potential for conflicts may be reduced. Additionally, because you earn more as a couple than individuals, you might be entitled to keep more property in a Chapter 7 bankruptcy. Finally, filing together will reduce the legal expenses you'd pay if you filed separately.

Filing for Divorce First

If you file for divorce first, you'll be filing for bankruptcy as an individual. This is ideal if your spouse makes a considerable amount of money and their income was forcing you into Chapter 13 bankruptcy. In Chapter 13, you're required to pay back creditors over three to five years, whereas most debts are wiped out in Chapter 7.

Filing for divorce first is also a smart option if your spouse doesn't need to file for bankruptcy and you want to prevent creditors from coming after their assets.

If you’re not sure which process is right for you, reach out to The Law Office of Christopher J. Swatosh, LLC, for more assistance. This Ava, MO, attorney can help you file for bankruptcy and divorce, as he has over 20 years of experience helping clients make fresh starts. Visit their website to learn more about filing for bankruptcy, and call (417) 683-2987 to set up a consultation today.