What Effects Does Divorce Have On Bankruptcy?

Facing either divorce or bankruptcy is stressful enough. If you are going through both at the same time, you need an experienced lawyer to guide you through it. There are important considerations for pre- and post-divorce issues.

If you and your spouse are facing divorce and bankruptcy, contact my Rockford office today for a free consultation to discuss how bankruptcy may impact your divorce.

Frequently Asked Questions

How can bankruptcy help me finalize my divorce?

A divorce involves dissolution of the marriage and a division of property. What people do not always realize is that a divorce also allocates and divides debt. Often the simplest solution to debt allocation is for both parties to get a fresh start in bankruptcy, rather than spend more time and money arguing over how debt should be divided. Even if separated, parties can still file bankruptcy together so long as the divorce is not finalized, resulting in substantial savings in attorneys fees and court costs.

My former spouse still owes me a debt from our divorce, but has filed bankruptcy. How does this affect me?

If your ex-spouse has an ongoing child support obligation to you or owes you for back child support, you will not be affected at all by his or her bankruptcy filing. Those debts are not dischargeable. If you are owed a debt as a result of property division, your rights may be affected, depending on what type of bankruptcy your former spouse has filed.

My former spouse is pursuing me for child support. Can bankruptcy help?

Your child support obligation will not be discharged no matter what chapter of bankruptcy you file. However, Chapter 7 bankruptcy could help you discharge other debts, making your child support obligation more manageable. Chapter 13 bankruptcy may allow you to consolidate your back child support obligations along with other bills into one manageable monthly payment.

Learn More Before You Proceed With Either Process

Please call 815-306-4189 or contact my law office online for a free consultation for more information.