It’s no secret that money problems have a tendency to strain a marriage
and when things get grim, finances can drive a couple apart, leading to
divorce. At Cairns Law Offices, we specialize in low-cost, no-fault divorces; therefore,
we help a fair share of people who are having financial problems and simply
cannot afford a costly divorce.
Because of our unique “niche,” we have seen firsthand how debt leads to
bankruptcy and divorce. That being said, we often have clients as us, “Should I file bankruptcy
before or after the divorce?” While the right answer depends on
the individual circumstances, in many cases it’s wiser to file bankruptcy
BEFORE the divorce.
Benefits of Filing Bankruptcy First
Let’s take a closer look at some of the key reasons why it makes
financial sense to file bankruptcy
jointly before filing for divorce:
- Filing bankruptcy jointly is cheaper than filing two separate bankruptcies
after a divorce. When you file together while married, there’s usually
only one attorney fee, one set of papers and schedules and one Meeting
- When you file bankruptcy before divorce, you are no longer liable for joint
debt incurred during the marriage. If you file divorce first, the later
bankruptcy filing may be pointless. If you agree to pay any joint debts
in full and you later file bankruptcy, it will relieve your liability,
but it won’t eliminate your former spouse’s liability. You
could be forced to pay the debt or reimburse your former spouse if he
or she is forced to pay it.
If your spouse files an individual bankruptcy case before or during the
divorce and you don’t join him or her, you can be saddled with
all of the joint debt.
- When you file bankruptcy jointly while still married, it makes the settlement
process easier and less stressful.
Though it usually makes sense to file bankruptcy before a divorce, that’s
not always the case. Sometimes, spouses do not qualify to file a Chapter
7 bankruptcy because combined, their income is too high. In such situations,
it may make more sense for the spouses to file bankruptcy individually
after the divorce.
Looking for a divorce attorney in Pennsylvania?
Contact us today to learn how to obtain a no-fault
divorce for just $219!