Sometimes, life attacks from multiple sides. Sadly, it is not uncommon for those going through a divorce to end up in bankruptcy at the same time, with seismic changes to one’s finances as a result of debt restructuring. However, depending on your unique situation, it can be difficult to determine which proceeding should happen first and how to handle both.
Depending on the situation, getting a divorce before filing for bankruptcy can be the best path for many couples. There are two different types of bankruptcy filings, each named for the chapter of the U.S. Bankruptcy Code used for the filing. Chapter 7 is for individuals or couples with very few assets, while Chapter 13, also called a reorganization bankruptcy, is for those with steady income and debt that it is possible to restructure.