Divorce and Bankruptcy In Minnesota

This is a common situation facing our bankruptcy clients. The client is separated from their spouse and they always wonder should we file bankruptcy together. The answer to this depends upon each situation but in general people getting divorced with a large amount of debt should file a chapter 7 bankruptcy before divorce, and should file a chapter 13 bankruptcy separately, after the terms of the divorce have been finalized. The reason is that if all our clients are fighting about is debt, then filing a chapter 7 bankruptcy wipes out the debt, making the divorce an easier process. If the client does not qualify for a chapter 7 bankruptcy, then they should file a separate chapter 13 bankruptcy, the reason for this is simple, after a divorce you do not ties that bind the couple together. If you file a joint chapter 13 bankruptcy, you will have to rely on another party to continue to make the plan payment for 3-5 years.