Bankruptcy and Divorce

Because so many people going through divorce are under financial stress, they often think about the possibility of bankruptcy as a way to get control of everything. If you’re thinking about bankruptcy, or more importantly, if your spouse is thinking about it, you’re smart to pay attention to this information, because the way you word your divorce settlement can have a lot to do with how the bankruptcy affects your divorce, and vice versa. There’s lots of information here on DivorceInfo on how bankruptcy and divorce affect each other.

I don’t do bankruptcies. I think bankruptcy, like divorce, is an area that you can’t do well unless that’s about all you do, so I leave that to others. What I’ve concentrated on is understanding how bankruptcy and divorce fit together.

The first thing you need to understand, if you haven’t already thought it through, is that there are several different kinds of bankruptcy. Beyond that, here are the way the issues settle out:

You’re Not Alone

Most of us know that bankruptcy filings are up. Most of us don’t know how much. Here’s how the U.S. non-business bankruptcy filings have increased over time. This doesn’t mean bankruptcy is a great idea. It does mean, though, that if you become involved in bankruptcy, you’ll have more company than you would have had a few years ago.

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