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Bankruptcy and Divorce in North Carolina

If someone is considering a divorce as well as a bankruptcy filing, it’s important that he or she determines which action to take first. Individuals who file for bankruptcy at the wrong time could end up on the hook for a spouse’s debts, even if they have discharged their own. Whether it’s better to start with the bankruptcy or divorce will depend on a person’s situation.

If both spouses have debt and agree to file for bankruptcy, this is generally best done before a divorce. However, if both people cannot agree to file for bankruptcy, filing after a divorce is completed may be the best way to go. Individuals who file for bankruptcy alone and then file for divorce may still find themselves having to pay off the spouse’s obligations because the asset division process assigned them some of their spouse’s debt.


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