When you decide to split from your husband or wife in Texas, your financial future may end up looking a whole lot different than you anticipated. You might find that you have little to your name in terms of assets after a divorce, and this can make it quite difficult to stay atop your debts and finances.
Per Experian, depending on the specifics of your situation, you might want to consider filing for bankruptcy when you divorce to give yourself a fresh financial start. However, this may not prove wise for everyone.
When bankruptcy might make sense amid divorce
If you and your spouse have hefty debts together, it can benefit you both to file for bankruptcy together before pursuing your divorce. This allows you to avoid making individual bankruptcy filings — and having to pay your own associated fees. However, it does require some cooperation between you and your former romantic partner. Filing for bankruptcy before your divorce may also simplify the asset division part of your split.
When bankruptcy might not make sense amid divorce
It is generally unwise to file for bankruptcy while your divorce is ongoing. This is mainly because a bankruptcy filing is likely to delay and complicate the process. In some cases, such as if you plan to file for Chapter 13 or fail to qualify for a Chapter 7 bankruptcy, it may serve you well to wait until your divorce becomes final to make your bankruptcy filing.
Everyone’s situation is different, and whether filing for bankruptcy makes sense depends on your specific circumstances. The more you understand about what you stand to gain or lose by doing so, the better your chances of making an informed decision.