Although there are many reasons for why a marriage may not work out, one of the leading causes involves finances. If you've decided to get out of the relationship and also seek financial freedom and relief, you might be at a loss as to whether you should file for divorce first or file for bankruptcy first. While there are many pros and cons to each option, filing for bankruptcy first can really help your financial situation. Here's 3 reasons why.
Lower the Cost of Filing
The cost of jointly filing for bankruptcy and filing for bankruptcy separately is the same. You can expect to pay a filing fee of $335 if you are filing for chapter 7 bankruptcy and a filing fee of $310 if you are filing for chapter 13 bankruptcy. If both you and your spouse need to file for bankruptcy, then filing for bankruptcy first can help you both lower the overall amount of fees you'll have to pay.
If you plan on hiring a bankruptcy attorney to walk you through the process, most attorneys also charge the same for joint filings and separate filings. In short, you'd be able to save money in that area as well. In addition, some attorneys are more likely to take pro bono cases for couples.
Enjoy Double the Exemptions
Depending on your household size, your income, and the state that you live in, you will be granted different exemptions. Some states double the allotted exemptions for couples. If this is the case for your state, filing for bankruptcy before filing for divorce can leave you with more assets and in a better financial position in the end.
Split Assets Equally for Less Work During the Divorce
Once the bankruptcy filing has been finalized, most of your marital assets will have already been split and used to pay creditors. Most, if not all, of the marital debt that has accumulated should be taken care of. This makes filing for divorce simple and easy, as there's nothing more to fight for. You'll be able to enjoy a clean financial slate once the divorce is finalized.
If both filing for bankruptcy and divorce are imminent, speak to an attorney like those at Reppe Law Office to determine whether filing for one before the other may be better for your situation. In most instances, bankruptcy attorneys recommend filing for bankruptcy first before filing for divorce, as this will help improve your financial standing and will make filing for divorce a lot simpler.
Hello, I'm Christina Miller. Have you ever been fascinated with why the law works the way it does? Ever since I was in junior high, I had an intense interest in anything related to our legal system, whether it be a crime drama on television, a judge show or a legal case covered on the news. I followed it all. As time progressed, I began learning about how the actual legal system worked and not just the fictionalized version of our legal system. This has lead me to start writing my own blog posts about law that I hope will help others.