Believe it or not, bankruptcy and divorce do have a big impact on each other. Many domestic relations attorneys are not fully aware of the impact that a divorce decree may have on a bankruptcy, therefore if you are contemplating bankruptcy while in the middle of a divorce, it is very important for you to consult with a bankruptcy attorney immediately to find out how your divorce may affect your options.
Several divorce related “debts” are not discharged in bankruptcy. For example, spousal support and child support are not a dischargeable debt and you will still be responsible for paying those debts even if you file for bankruptcy protection. In addition, if your divorce decree orders you to pay a debt that is joint with your ex-spouse and specifically states that you are to “hold him/her harmless,” if you file for bankruptcy relief on that debt and do not continue to pay it, you can still be held in contempt for violation of your divorce decree. Don’t get me wrong, the debt may be a dischargeable debt, however you are in contempt for not holding your spouse harmless, as your creditor may now turn to him/her to seek payment for that debt.
At the Law Office of Wayne P. Novick, our attorneys are incredibly knowledgeable about the bankruptcy laws and the impact your divorce may have on your options. Please call us at 937-436-2606 for a free consultation to review your financial situation.