Should I File Bankruptcy Before or After my Divorce, If your bankruptcy is a simple Chapter 7 Bankruptcy, then filing it before your divorce may be the best option. Since Chapter 7 bankruptcy can be filed and complete in just several months, there’s no reason you and your spouse can’t file jointly, discharge your debts, then divorce afterwards.
Does Bankruptcy Stop Divorce Proceedings
While filing bankruptcy will not stop divorce proceedings, the automatic stay, which stops almost all lawsuits against the filing debtor, may hinder your ability to get through a property settlement.
Can I File Bankruptcy and Divorce at the Same Time
Although you shouldn’t file for divorce and bankruptcy at the same time, you can still choose which process to take care of first. Filing for bankruptcy first also simplifies the division of assets in divorce because they are typically divided during the bankruptcy process – although they can sometimes change.
Should I File Bankruptcy Before or After Foreclosure
Filing for bankruptcy will eliminate some but not all of your debts. If you file for bankruptcy before foreclosure, your mortgage debt will be discharged. (Although the lien will remain, which means that if you default on payments, the lender can still foreclose.)