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Is it ideal to declare bankruptcy during a divorce?

On Behalf of | May 16, 2023 | Chapter 7 Bankruptcy

As if divorce isn’t stressful enough, many couples facing the end of their marriage also find themselves in dire financial straits. When the bills pile up, and the debt collectors start calling, it’s natural to start looking for a way out. One option that may seem appealing is filing for bankruptcy. However, before you make any decisions, it’s important to understand the potential consequences.

If you’re going through a divorce, you may feel overwhelmed and uncertain about the future. But this shouldn’t drive you into making a decision you might regret. Bankruptcy and divorce are major life events with significant financial and emotional impacts that are better handled one at a time and not simultaneously. This article explores whether you can declare bankruptcy during a divorce and what it could mean for your financial situation.

It delays the divorce process

Filing for bankruptcy can add another layer of complexity to an already complicated divorce. When you file for bankruptcy, all your assets and debts become part of the bankruptcy estate. This means that the court will need to determine which assets are exempt from bankruptcy and which debts can be discharged. This process can take time and may delay the divorce proceedings.

Delays property division and debt allocation

When you file for bankruptcy, an automatic stay goes into effect, prohibiting creditors from pursuing collection actions against you. This may temporarily halt property division and debt allocation until the bankruptcy proceedings are resolved.

In addition, bankruptcy can affect how property is divided between you and your spouse. For instance, if you apply for Chapter 7 bankruptcy, some of your assets may be sold to pay off creditors. This could impact the division of assets in your divorce, as fewer assets may be available for distribution.


Yes, it is possible to declare bankruptcy during a divorce. However, the process can be complicated and may impact your divorce proceedings, particularly concerning property division and debt allocation. Therefore, you should consider addressing these major life events one at a time.


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