Should I file bankruptcy before or after my divorce

One Gilbert attorney has some really good advice about this topic.  She says,

"In a community property state such as Arizona, it can be a good idea to file bankruptcy before you start any divorce proceedings.  A joint bankruptcy will eliminate all of your  and your soon-to-be ex’s dischargeable separate and community debt in one fell swoop.  If there is any way you and your soon-to-be ex-spouse can get along enough to get the bankruptcy case filed jointly, this is the way to go.  Not only will it make the divorce easier, because there is little to no debt to deal with in the divorce proceedings, but the bankruptcy attorney’s fees will be less by filing one, joint, case.

If the divorce is complete and then you, or your ex-spouse, file bankruptcy, in can cause the other party to file bankruptcy as well.  Creditors may still pursue the non-filing ex-spouse, which will eventually necessitate two separate filings.  Creditors do not care which party was assigned what debt in a divorce decree or property settlement, they just want to get paid.  Two bankruptcy cases will cost twice as much and will deal with essentially the same debt for both parties.  Not very economical.

By far the worst way to proceed is to file bankruptcy while the divorce is pending.  The filing of the bankruptcy case will put a hold on the divorce case until one of two things happens.  One, the bankruptcy case is finished and closed which usually takes 6-12 months. Two, your divorce attorney files a Motion with the bankruptcy court asking permission to continue on with the divorce.  This is costly both in time on money."