Bankruptcy and Divorce

It is most often better to get a bankruptcy before one gets a divorce. There are two reasons for this 1) the stress of debt is can be extremely damaging to a marraige and the release of that stress through a successful bankruptcy can significantly improve relations; and 2) the bankruptcy of a couple is cheaper and, at time, easier and safer.

A bankruptcy does not prevent the collection of alimony and child support, nor does it discharge alimony or child support. But a bankruptcy can divest a spouse who is not yet divorced from certain assets. And a Chapter 13 can discharge debts that are contained in a community property division.

If a divorce is pending during a bankruptcy, the bankrutpcy court will not interfere, but the bankrutpcy court will protect the assets of the bankruptcy estate, even though those assets may be involved in the divorce.

Charles Chesnutt