Bankruptcy or Divorce, which to file first?


Which do you file first, the bankruptcy case or the divorce case? This is a question that comes up at times. There may be no simple answer but suffice it to say that if both parties have a lot of debt, it may be to their advantage to seek a bankruptcy discharge before heading to divorce court.

By filing for bankruptcy first, many of the questions as to who has to pay for what will be taken care of by the bankruptcy discharge order. If all of the unsecured joint and individual debt is eliminated by the bankruptcy, it may be easier to decide how the remaining assets, if there are any, should be divided. Also, if the parties have children and one or both are going to be facing child support, by eliminating all the debt, you free up funds to apply to the child support obligations.