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Divorce and Bankruptcy: Can They Both Be Filed at the Same Time?

Posted By Allmand Law Firm, PLLC || 11-Jul-2016

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.

There are a few points to review to understand whether filing both at the same time will be best for your situation:

  • 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.

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