Filing Bankruptcy After Divorce

The financial stress of divorce leads some people to file bankruptcy. Determining whether and when to file bankruptcy is an issue you should discuss with your lawyer early in the divorce process.

At Hendrickson Cooper Hughes, based in Huntington Beach, California, our lawyers are here to advise you through all of the issues of your divorce, including debt and bankruptcy. Call 714-362-2413 for a free initial consultation.

Discharging Marital Debts In Bankruptcy

Certain debts are dischargeable when you file bankruptcy, while other debts are not. For example, the obligation to pay spousal support and child support are not dischargeable. Neither are support arrearages. However, some debts such as credit card, hospital bills and payday loans are dischargeable.

It is unfortunately common for couples to have more community debts than assets. Going into a divorce, you may even have debts incurred by your spouse you are not even aware of, such as:

  • Unpaid taxes
  • Credit card debt
  • A second mortgage on your home
  • Business debt

If you have more debts than you can pay, it may make sense to discharge those debts by filing bankruptcy rather than dividing the debt.

The cost of maintaining separate households and paying support can lead to debt problems for anyone following a divorce. The sooner you begin planning, the better prepared you will be.

For More Information About Bankruptcy And Divorce

To discuss community debts with a knowledgeable attorney, call 714-362-2413 or complete our simple contact form to schedule a free initial consultation.