Divorce Attorneys Bankruptcy Issues

Most experienced bankruptcy and divorce attorneys agree: a direct causal relationship exists between failed marriages and bankruptcy. It seems that one drives the other. Additionally, loss of employment  completes an interdependent triangle, in that when one of these three unfortunate situations arise, the others follow all to often.

How divorce attorneys resolve bankruptcy issues

Under the Bankruptcy Code (federal law 11 U.S.C. 101, et seq.), child support obligations are not dischargeable. This means that the obligation of a parent to provide continued financial support for their children scurvies both chapter 7 and chapter 13 readjustment of debts. Many alimony agreements also receive special treatment under the Bankruptcy Code, yet notes and other executory contracts may be discharged. Therefore, the wording of all final decrees to terminate marriage must be carefully drafted by each divorce attorney to account for each client's special interest.

Following the termination of marriage, one spouse may file bankruptcy and discharge mortgage liability. This common occurrence does not discharge the remaining spouse from liability. Likewise, liability for many joint obligations owed by husband and wife during the marriage may also be discharged. For example, if spouses maintained joint credit cards, after a bankruptcy discharge is granted to one spouse, the remaining spouse must continue paying for debts incurred during their marriage.

Note also, during marriage, the Bankruptcy Code does not require spouses to file jointly.