Sunday, September 1, 2013

Should I get Divorced Before Filing Bankruptcy? people are contemplating divorce and bankruptcy at the same time. In fact, in some cases, ones financial position may have created stresses in their life that have contributed to the decision to file for a dissolution of marriage. But rarely have I seen financial problems, in and of themselves, cause on to get divorced. In fact, I have found just the opposite; one in financial difficulties often becomes more dependent on the other spouse to make it through hard times. 

While the question of whether to file bankruptcy before of after getting divorced may seem like a simply one on the surface, it is actually more complicated than simply giving a simple yes or no type answer. While the answer to this question is not as complicated as the bankruptcy code itself, the answer is directly tied to the bankruptcy code. Numerous things have to be considered, including the following:
  • Is there a custody issue?
  • Are both spouses working?
  • Is the household income more than the median household income for debtors of your household size in your state?
  • Is a tax refund expected at the end of the year?
  • Do you own your house (as opposed to renting)?
  • Are wages being, or going to be, garnished?
  • Is the divorce contested?
  • Are both spouses contemplating bankruptcy?
  • Which chapter of bankruptcy is most appropriate depending on when it is filed?
  • Are you behind on payments on any secured debts you might want to keep?
  • In the distribution of assets from the divorce, are there any funds to be transferred from one account to another pursuant to the judge's order? this is far from an exhaustive list, this should show you, at least on the surface, some of the things an attorney should be thinking about when such a question is posed. In fact, the question is actually complicated enough, depending you your situation, a bankruptcy attorney may need to get some information about your divorce from you divorce attorney before answering this question.

To get a proper answer to this question, I suggest you call to schedule an appointment for a consultation with a competent bankruptcy attorney in your area?


  1. Oh. I gleaned from your article that it's quite complicated to have a divorce and a bankruptcy proceedings all at the same time. And I think that there are many issues to consider before going through both divorce and bankruptcy proceedings. What a mess.

  2. I think you are correct. I was thinking of writing some specific case examples which I may still do.

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    2. Thank you Kelly for contributing to my blog. Please note there has been an increase in spam sites out of Australia, and as such, I am having to limit the links on my site to those in the United States. Do you have a debt management company in the United States you could refer my readers to?