(Video) What Should Come First... Divorce or Bankruptcy?

Posted by Wesley Scott on August 4, 2018 at 1:50 PM
Wesley Scott

It is one of the big triggers for Chapter 7 Bankruptcy. Not every relationship stays together. This, is a fact of life. Not shocking stuff right? But, the aftermath of a divorce can leave you financially and emotionally devastated. The question naturally becomes, do I get a divorce first or start my Chapter 7 Bankruptcy first?

While this is a common question, I don’t think it is a complicated one. Debt is an issue to the divorce right? If we can simplify the divorce proceeding shouldn’t we do that? If we can wipe out all of the debt so debt is not even an issue in the divorce, shouldn’t we do that first? I think so.

If both parties have sour credit, or will have sour credit, and have plenty of debt, consider filing a joint Chapter 7 Bankruptcy. It’s cheaper to do a joint Chapter 7 Bankruptcy and you clear debt together. Now, if the parties are not getting a long, doing a joint Chapter 7 Bankruptcy may not be possible. Sometimes, it is worth the extra fee to do separate Chapter 7 Bankruptcies.

Where it becomes troubling is when one spouse wants to file Chapter 7 Bankruptcy and the other spouse does not and they have significant joint debt. If one spouse files Chapter 7 Bankruptcy, and they are co-debtors on all of the debt, 100% of the joint debt will fall on the non-filing spouse. Will this create a rift? Oh hell yes!

However, better to have everyone’s cards on the table then try to play fast and loose and then file Chapter 7 Bankruptcy after the divorce is finalized- knowing the whole time you were going to file anyway.


When the time is right, or when you are ready, reach out to Minnesota’s HIGHEST GOOGLE REVIEWED bankruptcy law firm at www.kainscott.com. You will be glad you did!

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Topics: Divorce, Chapter 7 Bankruptcy, Filing Bankruptcy, MN Bankruptcy

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