Filing for Bankruptcy After Divorce

: Chris Lee Law Firm

  Filed under: Divorce

Divorce is an emotionally painful time for both parties, but it can be just as financially damaging as well. Many people experiencing divorce deal with financial issues, especially considering that money is the number one factor for divorce. However, while you can divorce your spouse, its impossible to divorce the debts that you incurred as a couple. And since you will be relying on one paycheck instead of two to handle the debt, filing for bankruptcy becomes an appealing option.

Divorce and Bankruptcy

Since laws vary state by state, it might be beneficial to seek the advice of a specialized attorney while filing for a Texas bankruptcy. You’ll want to ask questions about:

  • Property settlement. In general, Chapter 7 will not allow divorce property settlements to be discharged, while Chapter 13 has some exemptions. Working with a qualified attorney while filing for bankruptcy can help you navigate the legal nuances of property settlement.
  • Whether to file for bankruptcy before or after divorce. If you and your spouse decide to file for a Dallas bankruptcy before divorce, you save money immediately by paying one court-filing fee instead of two. Debts may be discharged jointly and you may qualify for Chapter 7. However, filing for bankruptcy after divorce is especially damaging if the income spectrum favors one spouse over the other. Furthermore, the debt is not dischargeable.
  • What doesn’t get discharged? After filing for bankruptcy, child support, student loans, and obligations arising from property settlement will not get discharged. To combat this issue, make it clear that any obligation owed is a form of support, not property settlement.

By keeping these issues in mind when speaking with an attorney, you will make the process of filing for bankruptcy much easier. Even though the relationship might be ending, financial security doesn’t have to go with it.


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