Bankruptcy and divorce
Many times, a divorce can lead to bankruptcy. The sad truth is that dividing two incomes and creating two households can be financially devastating.
It is very important that if your former spouse files a bankruptcy, you seek legal advice from a qualified bankruptcy attorney immediately.
It is a complicated matter and because of my experience in both family law and bankruptcy, I conduct a class on this subject for attorneys each year.
Generally, child support and alimony cannot be affected by filing bankruptcy. These are called ‘domestic support obligations.’
And while obligations to pay debts can be discharged in a Chapter 13 bankruptcy, they can’t in a Chapter 7 bankruptcy. However, whichever Chapter your former spouse files, an experienced bankruptcy attorney may be able to help you. Recently, I forced a former spouse to convert to a Chapter 13 so that she had to pay back a large part of the debt she had been ordered to pay in the divorce case.