How Does a Divorce Settlement Affect a Chapter 13 Bankruptcy?
There are many ways your divorce settlement can affect your Chapter 13 bankruptcy and vice versa. Completing Chapter 13 bankruptcy is a lengthy process, typically taking three to five years to complete. During this time, many aspects of your life may change, including a possibility of divorce. If you are working through Chapter 13 and considering divorce, or if you are going through a divorce proceeding and are considering filing for bankruptcy, talk to your bankruptcy lawyer about the specific ways you can expect the divorce to affect your bankruptcy. Below are a few general ways bankruptcy intersects with divorce when one spouse files for Chapter 13 bankruptcy on his or her own. The Divorce Court Cannot Divide Assets in the Bankruptcy Estate When you…
