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Bankruptcy & Divorce Basics

Bankruptcy & Divorce Basics

Bankruptcy While Married

One spouse may file for bankruptcy without the other but in most cases both spouses’ incomes are counted toward determining eligibility to pass an income test.

If one spouse files for bankruptcy, the other spouse’s credit will not be adversely affected as long as joint debts and the non-filing spouse’s individual debts are paid timely.


Bankruptcy During Divorce

If the bankruptcy is filed prior to the divorce, the couple can file one bankruptcy petition instead of two, thus saving money. In addition, getting a discharge of debts prior to filing for divorce simplifies the divorce process, making the divorce less complicated.

Keep in mind that although beneficial to file jointly for bankruptcy, it may not be possible or wise to do so in all circumstances.

Filing the bankruptcy and divorce at the same time is not common practice unless there is a need to file for divorce to obtain financial support or child custody orders, as well as, to file for bankruptcy to delay or resolve loss of income and home.


Bankruptcy After Divorce

Child support and spousal support are not dischargeable.


For further details please contact The Law Offices of Azita M. Mojarad, P.C.



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