bankruptcy and divorce

[kevinB003]

I am getting ready to go through a dissolution and i am going to have to go bankrupt also. Me and my wife seen a lawyer before the breakup happened and he told us we made to much money for us to go chapter 7 and we had to go chapter 13. My question is after the divorce is over can i file bankruptcy as a single person and go chapter 7 if my salary is under the limit for the state

[Tbornetun]

Yes, there is another thread going about bankruptcy and divorce, which to do first. If you are over income jointly, filing individually after the divorce is final would be the best way to go.

[AngelinaCatHub]

Yes, there is another thread going about bankruptcy and divorce, which to do first. If you are over income jointly, filing individually after the divorce is final would be the best way to go.

Yes I read that thread too. It depends though on which party makes the most and the settlement of assets now. It is my firm belief, that the divorce should precede any bk. I hope it is an 'amiable' divorce. Let me say as 'amiable' as one could be. 'Hub

[AngelinaCatHub]

Here is the link similar to yours, just updated.

http://www.bkforum.com/showthread.php?t=29470&page=2

[Tbornetun]

Yes I read that thread too. It depends though on which party makes the most and the settlement of assets now. It is my firm belief, that the divorce should precede any bk. I hope it is an 'amiable' divorce. Let me say as 'amiable' as one could be. 'Hub

I explained both situations in the thread you linked to. Every case is different. It is not always the best to divorce prior to BK. If the family court judge rules that one spouse is liable to pay the other spouses debt, they cannot include any of that liability in their bankruptcy because the debt is not in their name, therefore it cannot be discharged. The family court judge can enforce the final Judgement and Decree to force the spouse to pay the debt. The bankruptcy judge cannot/won't overturn the family court judge and the family court judge can force the creditors to put the debt in the other parties name. That is why filing jointly prior to bankruptcy is best in some cases. I posted more information about why and how in the other thread.

[AngelinaCatHub]

I explained both situations in the thread you linked to. Every case is different. It is not always the best to divorce prior to BK. If the family court judge rules that one spouse is liable to pay the other spouses debt, they cannot include any of that liability in their bankruptcy because the debt is not in their name, therefore it cannot be discharged. The family court judge can enforce the final Judgement and Decree to force the spouse to pay the debt. The bankruptcy judge cannot/won't overturn the family court judge and the family court judge can force the creditors to put the debt in the other parties name. That is why filing jointly prior to bankruptcy is best in some cases. I posted more information about why and how in the other thread.

[Tbornetun]

It is quite sad. Most of the time the reason for the divorce is the money/debt problems. I always wonder if they had got a handle on their debt sooner or even filed BK sooner, maybe they wouldn't be seeking a divorce.
One can never tell.

[kevinB003]

Thank you all for the info in my situation all the debt is in my name and i hope it is going to be a calm divorce my question is though should i take all the debt in the divorce and then go bankrupt so my ex wife does not have to go bankrupt, because i am sure i wll have to pay for hers too

[Tbornetun]

If all the debt is in your name, get the divorce first. Then it will make it easier for you to pass the means test. If she has any debt in her name at all, she will need agree to pay it in the divorce, you cannot discharge any of her debt in a BK. Then all should be fine.

[shadowb]

I have a question. My hubby and I are in a chapter 13. He blindsided me last week with divorce papers out of nowhere. Because the trustee wanted to take money out of my check, I get a whopping $13 and some change every two weeks....not enough to raise two kids on. Looks like we are moving home with my parents. Anyway, seriously I can't even afford to have the insurance premiums out of my check now since they just increased as of January 1st. Having the BK payments is going to be such a hardship. The reason for the BK was my husband's fault...he got behind the IRS payments we were making and they seized our bank account. We filed the BK because of that. Also regarding the debts, that got rolled in the BK, they were primarily his anyway. I figure at this point if I can just keep my car I will be happy. ANy thoughts on this and how should I proceed?