Robert G. Smith, PLLC
212-499-0940

Knowing when to file bankruptcy and divorce

Some New York residents who are in unhappy marriages in which finances are an issue may want to file for both divorce and for bankruptcy protection. Since these two separate types of cases can have major effects on one another, it is important for people to understand the appropriate filing order and timing to avoid problems.

Several scenarios change the order of filing bankruptcy and divorce petitions. If a person's spouse has significant income and assets, they may want to file their divorce case first. If a joint bankruptcy petition is filed first, the spouse's income will be counted as part of the household income, and it could prevent them from being able to get a Chapter 7 discharge of their debt.

If both spouses have significant debts and wish to file for bankruptcy jointly, they may want to do so before filing for divorce. That will allow them both to benefit from the debt discharge. People should be aware that when they subsequently file for divorce, however, all of the property they own will become a part of their bankruptcy estate until the discharge is final. This would mean that it can not be divided in a divorce proceeding until the discharge has been issued or unless the bankruptcy court otherwise agrees.

People are contemplating a divorce because their marriage is foundering because of overwhelming debt may want to discuss their situation with their family law attorney. The attorney may be able to work with a bankruptcy attorney to determine the best filing order, depending on the person's individual circumstances as well as the circumstances of the client's estranged spouse.

No Comments

Leave a comment
Comment Information

Get The Help You need

If you would like to talk with me, call my office in Manhattan at 212-499-0940 or contact me online.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us Today

Robert G. Smith, PLLC
950 Third Ave., 11th Floor
New York, NY 10022

Phone: 212-499-0940
Fax: 212-499-9091
New York Law Office Map