Divorce and Bankruptcy
| December 8, 2011 | Posted by Monica D. Shepard, Esq. under Bankruptcy, Divorce |
The reasons in FAVOR of filing bankruptcy BEFORE divorce include:
• Easier division of debt and property as financial obligations have been addressed via the bankruptcy • Paying for one jointly filed petition instead of two separate petitions saves costs • Contentious or prolonged divorce proceedings may sometimes further complicate already complex bankruptcy laws
Of course, there are some who will choose not to file jointly and let their spouse file bankruptcy alone. That is their option. The downside is while the filing spouse may become debt-free; the non-filing spouse may become obligated for the full remainder of the joint debts. The non-filing spouse may then become almost forced to file bankruptcy to protect him or herself.
Keep In Mind
Whether filing bankruptcy before or after divorce, it is important to analyze the type of debt involved. No matter when bankruptcy is filed, property settlement agreements and equitable distribution agreements are not eliminated by bankruptcy. Nor will either relieve any unpaid child support, alimony or address any future support payments.
photo credit: Lord Jim
This post is part of The Bankruptcy Alphabet Series.
For other variations on the letter “D”, visit the following links:
D = Debtors- Jay S. Fleischman, New York City Bankruptcy Attorney
D = Documents- Kimberly Coleman, Philadelphia Bankruptcy Attorney
D = Discharge- Cathy Moran, Northern CA Bankruptcy Attorney
D = Disclosures- Robert Doig, Colorado Springs Bankruptcy Attorney
D = DUI,DWI,OVI- Bill Balena, Ohio Bankruptcy Attorney
D = Dos and Don’ts- Jeena Cho, San Francisco Bankruptcy Attorney
D = Disclose- Cate Eranthe, Marin County Bankruptcy Attorney
D= Do’s & Don’ts- Peter & Jeri Behrmann, Livonia, Michigan Bankruptcy Attorneys
D = Discharge- Mark Markus, Los Angeles Bankruptcy Attorney
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