When you and your spouse are coming to terms with your marriage and finances,
you may have questions regarding divorce and bankruptcy. Depending on your situation, you may be recommended to complete one before
the other. Or, you may be able to complete each process at the same time
depending on debts, income, assets, and any final agreements determined.
Points to consider when filing both at the
same time:
- If a couple has joint debts they may want to consider filing a joint bankruptcy
petition to help eliminate or reduce their obligations. This is a common
scenario before divorce is filed. - You can save on attorney fees when you file bankruptcy first, especially
if both spouses want to file for protection. Many couples save more when
filing bankruptcy first instead of divorce as only one bankruptcy attorney
will be needed. - You should review potential drawbacks if you want to wait to file divorce.
This may include spousal or child support delays. This is a common reason
why some want to file bankruptcy and divorce at the same time. - You may find it easier to have separate attorneys if you and your spouse
decide to file divorce during bankruptcy proceedings. This ensures you
receive proper legal advice as each process moves forward. - Your combined median income may have an effect on eligibility for
Chapter 7 bankruptcy (if you want debts wiped out). You can review whether it is best to file
joint or individual petitions with your bankruptcy attorney. - If bankruptcy is being considered by one spouse but the other spouse does
not want to file, it may be best to complete the divorce first, unless
an issue of significance such as
foreclosure or wage garnishment is present.
At Allmand Law Firm, PLLC, our Dallas bankruptcy attorneys have worked
with many clients who explored their debt relief options before, during,
and after divorce. Our attorneys work on a case-by-case basis, and can
help you better understand how we can be of assistance with your particular
situation.
Contact us today for a free financial empowerment session.