Bankruptcy & Divorce

Financial stress often plays a role when a marriage is coming to an end. At Goodblatt · Leo, our attorneys work with individuals who are dealing with debt, reduced income, shared financial obligations, and questions about how bankruptcy and divorce may affect one another.

The timing of bankruptcy and divorce can affect how debt is handled, how costs are managed, and how financial responsibilities are addressed moving forward. Understanding how these decisions fit together can help you plan next steps and avoid unnecessary complications.

If you are thinking about divorce and bankruptcy at the same time, or if one follows the other, it helps to understand how financial decisions made in one process may affect the other. The order in which steps are taken, along with the type of bankruptcy involved, can influence costs and future financial responsibilities.

Filing for Bankruptcy or Filing for Divorce

A common question is whether it makes more sense to file for bankruptcy before divorce or after. There is no single answer that fits every situation, but there are factors worth considering.

Filing for bankruptcy before divorce may:

• Allow spouses to file a single joint bankruptcy rather than two separate cases
• Reduce filing fees and legal costs
• Simplify the division of debts during the divorce process
• Resolve unsecured debts before property division is finalized

In some situations, couples choose to file Chapter 7 bankruptcy before divorce to clear shared debts and make the financial side of divorce more straightforward. Chapter 13 bankruptcy may also be used as a planning tool prior to a final divorce judgment, depending on income and debt structure.

Filing for bankruptcy before filing for divorce can, in many cases, result in lower costs. Because financial and family circumstances vary from case to case, income, assets, support obligations, and long-term goals should all be reviewed before deciding how and when to move forward.

Bankruptcy After Divorce

If you are already divorced and either you or your former spouse is considering bankruptcy, questions often arise about ongoing financial responsibilities. You may be wondering how bankruptcy affects obligations created in a divorce settlement.

If your former spouse files for Chapter 7 bankruptcy, you may have questions about what happens to debts addressed in the divorce agreement. If you file for bankruptcy, you may also wonder whether support obligations can be discharged or reduced.

Certain debts are generally not dischargeable in Chapter 7 bankruptcy, including:

• Alimony
• Child support
• Many debts tied directly to divorce agreements

Chapter 13 bankruptcy works differently. While it does not eliminate support obligations, it may allow for the discharge of certain property settlement debts that arose from the divorce, depending on the circumstances.

Understanding which obligations remain in place and which may be affected is important before moving forward.

Our Experience

At Goodblatt · Leo, we bring a strong working knowledge of both family law and bankruptcy, allowing our attorneys to address how these two areas affect one another in real situations. Our team regularly handles matters involving shared debt, support obligations, property division, and post-divorce financial concerns, with careful attention to how timing and structure can influence outcomes.

Because bankruptcy and divorce often unfold over an extended period, our attorneys focus on helping you stay organized, understand available options, and anticipate how financial decisions may affect future obligations. Our experience with both Chapter 7 and Chapter 13 cases, combined with a practical approach to divorce-related financial issues, allows us to provide you with clear guidance throughout the process.