Divorce plus Chapter 7 Bankruptcy

By | December 12, 2017

Divorce Attorney AND Bankruptcy Attorney

If you must file for Chapter 7 bankruptcy then doing so before the divorce would likely be your best option. You and your spouse should file together,saving money on filing and attorney fees, discharge your debts and THEN divorce. However, if your combined income is too high for chapter 7 , you then may want to file after the divorce. Consult with your attorney regarding single and/or double exemptions particularly about any real property co-owned with your spouse.

Don’t freeze your assets off

Also, take into consideration that during Chapter 7 bankruptcy your assets and property will be frozen which then complicates things when splitting said things during the divorce. In a case like this, you may see the proceedings go on way longer than they should costing you time and money.
Should you and your spouse hire the services of a divorce attorney, then file for bankruptcy, your attorney can not represent you both. This action begins a conflict of interest for the attorney as he/she can’t represent opponents in a separate legal matter. It’s not workable to tell one spouse on how to hurt the other.
Your bankruptcy attorney will stay on as yours and your spouse’s attorney so long as you agree on all decisions. Should any disagreement arise, the attorney will likely resign leaving you and your spouse to hire separate attorneys.
Ultimately, when it comes to bankruptcy, cooperation between you and your spouse is the key to success.


  • Almost 50% of all bankruptcies filed are due to the consumer’s inability to pay for important medical issues because of lack of insurance coverage. The other 50% is because of divorce,credit card debt, or reduction of income.
  • People who file for bankruptcy become more financially stable 5-10 years later as opposed to those who never file at all. Fact: More people have full-time jobs after filing compared to those who don’t.

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