How to File Personal Bankruptcy During Divorce

Getting divorce often results in serious financial hardships for both parties involved. Many times it even leads to bankruptcy. In some instances, it's better to file personal bankruptcy during a divorce. If your divorce if putting a serious financial strain on you and bankruptcy is looking like your only way out, you'll want to consider whether it's better to do it now or to wait until your divorce is over. For more information on learning how to file personal bankruptcy during a divorce, read on!

Things You'll Need

• Divorce Attorney
• Bankruptcy Attorney
• List of Debts & Assets

Instructions

1. ~ Make a List of Your Assets & Debts ~

   List all of your assets and your debts. If your debts outweigh your assets and there is no way that you'll be able to get them caught up now that you are getting a divorce, filing personal bankruptcy may be your best choice.

2. ~ Talk To Your Divorce Attorney ~

   Before you do anything - like call a bankruptcy attorney and file papers - make sure that you talk to your divorce lawyer. You want to make sure that he/she is aware of what you are doing and that things are handled properly with your soon-to-be ex-spouse.

3. ~ Contact a Bankruptcy Attorney ~

   Your divorce attorney is likely not well-versed in bankruptcy laws, so you'll need to retain a bankruptcy attorney in addition to your divorce lawyer. Both attorney's should work together to make sure that your ex-spouse is notified properly and that all things are handled as seamlessly as possible.

4. ~ Expect Your Divorce Case to Initially Slow Down ~

   Once that you file bankruptcy, the federal bankruptcy court takes precedence over the state or county court that is handling your divorce. That means the the divorce court can not allocate any more assets until they are released by the bankruptcy court.

5. ~ Continue to Pay Spousal Support or Alimony ~

   Spousal support and/or alimony can not be discharged in a bankruptcy, so if you have been ordered to pay it, you should continue to do so.

6. ~ Consider Filing for Personal Bankruptcy During Divorce with your Spouse ~

   If all of your credit is joint, you may want to consider filing with your spouse as the banks will immediately go after him/her for funds owed if you go bankrupt on your own. This will likely eventually force them into bankruptcy as well so you may want to file together.

Tips & Warnings

• Bankruptcy can eventually make a divorce settlement a much simpler process, as it gets rid of all debts and many assets. The only thing the bankruptcy court can split after bankruptcy is what is remaining - 401Ks, IRAs, etc.