divorce first or bankruptcy first?

iVillage Member
Registered: 03-26-2003
divorce first or bankruptcy first?
2
Fri, 01-25-2008 - 10:47am

Does anyone know if it's better to file for divorce first or bankrtupcy first? If we file for BK first and then divorce, will we have to amend the BK?
Thanks if you know the answer!

 

iVillage Member
Registered: 12-02-2007
Fri, 01-25-2008 - 3:57pm

Hi i am in this situation now i know my bankrupcy laywer said the divorce can be in proceeding but to file together you must be married i know for mass were i live divorce takes forver and still after you go to court your divorce is not final for 120 days so the bankrucy lawyer told me that it is fine because when we file chapter 7 we still will be married

iVillage Member
Registered: 10-25-2006
Sat, 01-26-2008 - 9:08am

Heather,


Are you absolutely certain you must file for bankruptcy?


Many times people file for bankruptcy without first running the calculator, talking to the people they owe, and trying to make a budget.


First, get your bills together. What is it you can't pay? Are you behind on anything? Separate your monthly bills like rent/mortgage, utilities, car payment, car insurance, cell, cable, from your monthly bills for credit cards.


Second, tally up your income after taxes. What gets paid first is your rent or mortgage. You need to keep a roof over your head. Then utilities, so you can have heat, lights. Then car payment and car insurance. You'll need a way to get to work.


Third, cancel things you really dont' need like a cell phone, cable TV, internet service, subscriptions to magazines, newspapers, gym memberships, etc. These are things you truly could live without and you need only go without them until you get back on your feet.


Fourth, call all your credit card companies and see if they'll either lower your interest rate or lower your payment. If you're up to date on your payments it will be easier, if not, you'll have to make an offer, i.e. "I can pay you $20 month on this bill. Will you accept that?" If so, ask them to send you a letter saying they will. Then keep your promise and make the payment on time.


Fifth, can you get a second job to help pay the bills? Yes, it means working a lot of hours, but you can do it. Sometimes you can find part-time work that pays well. For example, many caterers needs servers for weekend events like weddings and parties. Pizza delivery is also good for the money. Check out other opportunities to make extra cash.


Sixth, if you're really strapped and dropping extras like cell service and cable doesn't help, consider selling one car to cut your monthly expenses like car payment and car insurance. Check out public transportation or share a vehicle or ride with someone else from work.


As for divorce, well, I don't know anything about your situation. But whether you file bankruptcy before or after divorce, it will take a lot longer to recover from the bankruptcy than the divorce. Your credit rating will be trashed for 7 years (you'll pay higher interest rates for insurance, loans, and other things, if you can get them.) You'll also be ineligible for loans, bank accounts, credit cards, and may find it difficult to rent an apartment or buy a home or car. So think about that very carefully before you file bankruptcy.


Remember, bankruptcy attorneys make money only if you file bankruptcy. So, if a bankruptcy attorney is telling you to file for BK, beware. He only makes money if you file. He doesn't if you don't. Try the above before you make this decision.


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