Legal Question in Bankruptcy in California

Re: divorce and bankrupcy

Normally, it probably wouldn't matter. It's usually best if both spouses do the bankruptcy before the divorce. It saves on preparing two petitions and two court filing fees.

However, because you just short sold your home, before you do anything drastic, you should consult with a tax advisor. There might be tax implications arising from the short sale that should be considered, especially if the home appreciated greatly in value since you purchased it. In that case, you might wait to file bankruptcy until you can discharge the tax obligation, if any.