Contemplating Divorce and Bankruptcy. Which comes first?? or both at same time?

Sometimes it's better to file before divorce and sometimes it's better to file afterwards. Every case is different. It depends on factors such as income of the parties, assets of the parties, whether the bankruptcy can be joint, community property state etc. So contact a bankruptcy attorney and get a free consultation before you take any action. You asked a very good question. Planning is the key.

Tough question. Without more information, the answer is that it depends. What it depends on is usually the income and assets of the parties. (And most importantly, whether the parties can tolerate being in the same room with each other for a few minutes). You need to review your particular situation with an attorney who handles both bankruptcy and divorce.

Filing together will save you the cost of two attorney fees. Most joint bankruptcy cases are just a bit more for handling the two of you than for the cost of handling just one of you. Other factors to consider are whether the two of you can work together on this project, what your respective incomes are, and what assets you have to divide. It is easier to get a single person to qualify to file bankruptcy on his/her own income than to get two people to qualify with two sources of income. And although sometimes exemptions double when a couple files jointly, sometimes exemptions don't double. So filing separately could allow the filer to keep more assets. Hope this perspective helps!

A bankruptcy can help reduce debt distribution issues within a dissolution of marriage action. Further by filing a joint bankruptcy which you can only do while you are still married you pay only one filing fee. So if you both need bankruptcy and it is chapter 7 it is likely best to start bankruptcy first.

The threshold question is IF bankruptcy is right and available for both of you to file while married and IF all your assets will be protected if filing jointly, then file together and save some money. You only have 2 goals: to get discharge your debts and keep any equity you have. But other issues can change that...such as what if you have a house and letting it go...who gets to live there free while they foreclose? so other issues can affect it but if agreed upon, then file jointly if you can achieve those goals. If in a community property state, then I always suggest obtaining the discharge FIRST before the divorce is final so that the marital community debt is discharged..but again, that assumes all assets are protected!

A common question indeed, although there is not a one-size-fits-all answer. As a general rule, if there are joint debts, a spirit of cooperation and a joint goal in getting those debts wiped out, it often makes the most sense to file the bankruptcy before the divorce, because then you will only need to pay for one attorney, as opposed to two separate attorneys, which is what would happen if you both waited until the divorce was done. Those are a lot of “ifs,” with a couple of the drawbacks including the fact that if the divorce is put on the back burner, then one spouse’s rights could be jeopardized, for instance if that delays the implementation of child support. It is probably best that both spouses have separate divorce counsel while the bankruptcy is going through. I typically do not like to do a bankruptcy for somebody who is going through a divorce without a divorce attorney, because it would be irresponsible for me to not give you appropriate advice in the divorce as the divorce can affect the bankruptcy and vice versa, and if I’m giving you advice in the divorce, then you should hire me to be your divorce attorney. If the divorce has not started as of yet, or if it is going to be a joint bankruptcy filing, that is less of an issue. Another reason to file for bankruptcy in two separate cases is when your combined income puts you over the median income for your household size, which could render one or both of you in eligible for a joint Chapter 7 bankruptcy, whereas you might both be eligible for a Chapter 7 discharge if you were to file separate cases and could exclude the other spouse’s income. If one spouse wants to file but the other one does not, then as a general rule I would normally suggest getting the divorce done first, unless there is a pressing need to file for bankruptcy, such as a garnishment or foreclosure. Again, the case-by-case analysis differs greatly.

In addition to all the other good answers, be aware that there are two kinds of bankruptcy cases available to consumers, chapter 7 and chapter 13. A chapter 13 case lasts a minimum of 3 years and to a maximum of 5 years. So, if you and your spouse don't qualify for a chapter 7, which is over in less than a year, You will need to remain on good terms throughout the chapter 13 process if you decide to go ahead with it. That could be a challenge. Further, the planning mostly concerns property issues. If there is substantial property to protect, or support issues, planning is definitely needed however, if the only issue concerns a divorce, it is possible to do them at the same time. I just presented a seminar on this very topic, and it's very involved, so you should consult a knowledgeable Pennsylvania lawyer. Good luck.

Almost always a joint chapter 7 before divorce if the show fits! You need a personalized bk consult ASAP before you make any decisions.

The answer depends upon the level of conflict between the spouses, the spouse whose name is on the debt (or both) and the aggregate amount of marital debt. If you and your spouse are on reasonably good terms and are able to communicate, you can accomplish both concurrently with a provision in the property settlement agreement relating to the bankruptcy. The answer also depends upon which spouse has the debt - although all debt accrued during the marriage is marital debt (with some exceptions of course)- the name on the debt may affect the discharge as to one or both parties under Chapter 7 or reorganization under Chapter 13. My suggestion is that you consult a divorce attorney regarding the divorce issues and a bankruptcy attorney regarding the bankruptcy issues - they can be done concurrently, although they take differing amounts of time to complete.