For some people, bankruptcy and divorce (or divorce and bankruptcy) go hand in hand. Money problems and financial woes contribute to the failure of many marriages, but planning ahead can make a divorce and a bankruptcy less stressful, less complicated and more effective.
The key question for many people is whether they should file before they divorce or after they divorce. However, filing before or after depends upon the jurisdiction where the parties live, how much debt and property the husband and wife have, and the type of bankruptcy they wish to file – generally Chapter 7 or Chapter 13.
Many people cite divorce is a leading cause of their bankruptcy. However, before making any move, it is a good idea to talk with a lawyer and answer the first question: filing for bankruptcy and then divorce, or divorce and then bankruptcy?
Bankruptcy and divorce can pull the legs out from under people. Both can be painful and agonizing. The statistics show that financial woes often lead to the failure of a marriage. Working together to resolve financial issues through the bankruptcy process may accomplish the redemption of a failing marriage.
When bankruptcy and divorce become joined, most people cannot handle the questions they must answer without good legal advice. Some couples wait too long and the marriage is beyond repair.