Hablamos Español

FREE CONSULTATION (949) 287-5711
Toll Free for Work Injury: (888) 9WORKLAW
Bankruptcy and Divorce
Banner Inner

Bankruptcy and Divorce Proceedings Affect Each Other

San Bernardino bankruptcy attorneys advise you on your rights

If you are going through a divorce or dealing with post-divorce issues, you can learn how filing for bankruptcy affects your unique situation by consulting with a bankruptcy attorney in our Ontario or Santa Ana, California office. At Invictus Law, P.C., we help you find the legal resolutions you need at affordable prices and provide you with the attention you deserve. Our goal is to resolve your legal matters with efficiency and effectiveness.

The limits of Chapter 7 and Chapter 13 bankruptcy

Alimony and child support debts are not dischargeable under either Chapter 7 or Chapter 13 bankruptcy. If you are behind with these payments, bankruptcy cannot help you with them. But, bankruptcy does offer other advantages.

Chapter 7 can quickly discharge credit card debt and medical bills

If you pass the means test, Chapter 7 bankruptcy can offer you a faster resolution of your debt situation, usually within 60 to 90 days after the first meeting with creditors. Through Chapter 7, a trustee liquidates your assets and sells them to pay off your creditors, offering you a fresh start. Most of your debts can be discharged, including unsecured debts, such as credit card and medical bills. Getting your divorce on the docket may take longer, and it’s best to get your debt situation cleared up before entering into a property settlement.

If your credit card accounts are jointly held and one of you files for bankruptcy, the credit card company pursues the other spouse. The contract you both signed for the credit card typically has language that holds both of you liable for payment.

Property settlement debts cannot be discharged through Chapter 7 bankruptcy.

Chapter 13 bankruptcy can discharge property settlement debts

Filing for Chapter 13 bankruptcy allows you to discharge any debts resulting from property settlements. This is not possible under Chapter 7. If obligations to your spouse are not considered domestic support, they are considered property settlement. The marital estate becomes the bankruptcy estate. The family court handling the divorce seeks permission from the bankruptcy court to proceed. The family court typically won’t distribute assets until the permission is granted, since the trustee now has the responsibility for the estate.

The interplay between bankruptcy and divorce issues can be complex, and one of our qualified bankruptcy attorneys can guide you through the process, pointing out the risks and challenges you may face. We also advise you on your bankruptcy options after we review your financial documents. Our goal is to make the process as stress-free as possible and to give you a positive legal experience.

Get more information about your bankruptcy options and how divorce affects them

Invictus Law, P.C., with offices in Santa Ana and Ontario, California, helps you deal with divorce-related issues while seeking debt relief through bankruptcy. You can call us around the clock at (949) 287-5711 or contact us online to schedule your free initial consultation. Se habla Español.

Share This Page:
Contact Form Tab