Divorce & Bankruptcy – Part 1

 

310.376.9865

When things go bad, they go bad, and frequently married couples want to go through both a divorce and a bankruptcy.

Question:  Should the parties file bankruptcy first, or divorce first.

Answer:  Depends (Typical lawyer answer).

Cooperation:  If the parties are able to coexist and are still cooperating, then probably should file the bankruptcy first, because:

  1. The bankruptcy process will be less expensive, one filing fee, and one attorney fee.
  2. All unsecured debt will be discharge for both parties, and should have little impact on the state court divorce proceedings.

Non Cooperation: If all communication has broken off, and the parties are no longer cooperating, then the party filing bankruptcy should probably file the bankruptcy after the divorce has been filed, because:

  1. The filing spouse will then know the outcome of the divorce proceeding. If the party contemplating bankruptcy has been ordered to pay community debt, his bankruptcy attorney can advise the only way to discharge this debt is through a Chapter 13 filing. This debt would not be discharged in a Chapter 7 discharge.
  2. If the filing spouse had filed a Chapter 7 prior to the state court proceeding, and he had been ordered to pay a portion of the debt, it would not have been dischargeable, and he would have to wait 4 years to file a Chapter 13 to discharge the debt.

DISCLAIMER: The content of this website is intended for informational purposes only. Nothing herein is intended to form the basis of an attorney-client relationship or constitute legal advice.

  • Law Offices MJ Mann Bankruptcy Attorney
  • 2706 Artesia Blvd, Suite BK
  • Redondo Beach, CA 90278
  • 310.376.9865

About: Marvin Mann