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Divorce After Bankruptcy


There is no question that bankruptcy can significantly complicate a divorce. In a typical divorce, assets (and debts) are divided between the parties. This can change when one party to the couple is in the process of bankruptcy, or recently bankrupt.

In any divorce, it's important to protect your rights and secure your future. This is probably most true if you or your spouse has recently filed bankruptcy or are considering bankruptcy. One spouse's bankruptcy may impact the other's liability for certain debts, and the division of debts and assets in divorce may impact one spouse's ability to discharge debts even if those debts would otherwise have been dischargeable.

If you're concerned that the outcome of your divorce may be affected by a recent bankruptcy filing, speak with a family law attorney today. Simply fill out the form below to connect with a sponsoring divorce lawyer near you.

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Jointly Held Debts in Divorce

In some cases, divorcing couples with significant joint debts find it beneficial to both of them to file for bankruptcy jointly before proceeding with the divorce.

In most cases, once a joint bankruptcy claim is filed, the court will issue an automatic stay, which will prevent the debtors and collectors from harassing the parties. In other words, just starting the bankruptcy process is generally enough to force creditors to back off and stop calling.

Contacting a local attorney familiar with the impact of bankruptcy on divorce can help you analyze your options and make an informed decision about how to proceed. Both divorce and bankruptcy are complex legal processes, and one way to properly navigate the two is to have an attorney help you.

One effect of a divorce after bankruptcy is that it there may be fewer assets to divide.  In some cases, much of the debt will be written off by the bankruptcy trustee, and the pair will emerge from the divorce with little, or even no debt.

However, alimony and child support are two obligations that will not be wiped away in bankruptcy. Like student loans, debts incurred through fraud or theft, criminal restitution and some other divorce-related debts, alimony and child support debts generally survive bankruptcy.

Neither process is easy, or fun. But if you carefully examine all of your options and find that divorce and bankruptcy are the two that could lead to a happier life, then it is important to have the courage to take the first step.

If you are considering divorce, then connect with someone who can help you now.

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