Bankruptcy & Divorce

You may be in the process of a divorce or you are in a relationship that is fracturing under the stress of debt or for other reasons doesn’t seem like it will last, you should definitely consult with an experienced bankruptcy attorney, while keeping the following issues in mind.

1. 1. Have you commenced divorce proceedings? If you are in a divorce, divisions of property or determinations of support can impact your eligibility and or your ability to protect your property whether that is real estate or personal investments or belongings. If a divorce is finalized within 180 days of filing a bankruptcy, property that you are granted during a divorce decree become property of the bankruptcy estate even if you are awarded that property after your bankruptcy if the divorce is finalized within 180 days of filing.
   2. If you are going to pay or receive spousal maintenance, that could impact your income qualifications for a bankruptcy.
   3. Would filing for bankruptcy smooth negotiations for division of property? Sometimes removing the debt allows each party to be better off after a divorce.
   4. If your separated spouse is living in the home, you may be better off filing bankruptcy before the divorce is finalized, particularly if your would be retaining a portion of the proceeds of the home at a later day.

All in all, it is important to consult an experienced attorney of before filing a bankruptcy if you are in a situation where a divorce may impact your decision of when to file the bankruptcy.