Is it better to file bankruptcy before or after a divorce?

Is it better to file bankruptcy before or after a divorce?

A main advantage to filing bankruptcy before divorce is the potential for cancelling joint marital debts that would otherwise have to be divided up as part of divorce proceedings, and then tackled separately in each spouse's bankruptcy.

Can one spouse file for bankruptcy and not the other?

You can file for a bankruptcy in California either jointly with your spouse or individually. California is a community property state, and even if you file bankruptcy separately without your spouse, your community property is protected. Creditors cannot come after any part of it as long as you are married.

Can you file bankruptcy if you own two homes?

In most cases, if you have equity in a second home, vacation home, or house you use as an investment, you won't be able to keep it if you file for Chapter 7 bankruptcy. There is nothing within the bankruptcy laws that strictly forbids you from keeping a second home in your Chapter 7 bankruptcy.

What happens if you divorce during bankruptcy?

Even if you get divorced during your Chapter 13 bankruptcy, you can still continue making your regular plan payments. Also, the financial burden of divorce and maintaining two separate households typically doesn't allow debtors to afford their regular plan payments.

How much should you be in debt before filing bankruptcy?

While there is no minimum debt amount required to file for bankruptcy, you can't have more than $1,257,850 in secured debt or $419,275 in unsecured debt if you want to file for Chapter 13 bankruptcy (these amounts, which are adjusted periodically to account for inflation, are valid as of April 2019).

Can I file bankruptcy and not affect my husband?

Is spousal support dischargeable in bankruptcy?

The general rule is that an alimony obligation doesn't just disappear in bankruptcy. Filing for bankruptcy to avoid an obligation to pay spousal support is a bad idea, because domestic support obligations cannot usually be “discharged” (cancelled or forgiven) in a bankruptcy proceeding.

Can you file bankruptcy without spouse knowing?

If you file for bankruptcy without your spouse, it may affect your spouse's obligations on debts, ability to keep property, and more. If you are married, you can file an individual bankruptcy without your spouse. the property laws of your state, and. whether you file for Chapter 7 or Chapter 13 bankruptcy.