Bankruptcy in Divorce

Is Bankruptcy a Factor in the End of Your Marriage?

Money is a contentious issue in many relationships. Husbands and wives tend to blame one another for the couple's mounting debts whether or not it is an accurate assumption. Unfortunately, these financial disagreements lead to the end of many marriages.

It is important to know that while you can divorce your spouse, you cannot divorce the debt you incurred during your marriage.

Twohey Maggini, PLC has protected the financial interests of clients throughout the Grand Rapids, Michigan area for more than half a century. Our lawyers have a comprehensive understanding of the many situations that cause people to consider bankruptcy. In many of these situations, divorce is a primary factor.

Should You File For Bankruptcy Before or After Divorce?

Many of our clients question whether to file for Chapter 7 or Chapter 13 bankruptcy before or after their divorce. While every situation is unique, in most circumstances it is advisable to file for bankruptcy before the end of your relationship. To discuss your particular circumstances with a divorce attorney familiar with the intricacies of bankruptcy law, contact us at 616-459-6168.

Don't Be Held Responsible for Your Ex's Debt

Both spouses are held responsible for debt acquired during the course of the marriage. Although a divorce agreement technically divides debt between spouses, creditors are not required to abide by the family court's decision. This means that if your ex-spouse files for bankruptcy after divorce or fails to pay his or her debts, a creditor may pursue collection actions against you.

If you and your spouse are dealing with overwhelming debt and considering a divorce, bankruptcy may be a viable option. By filing for bankruptcy before filing for divorce, you can protect yourself from the possibility of being held responsible for debts you hadn't anticipated. This will also allow you to truly know where you stand financially before it is time to divide marital property.

To learn more about filing for bankruptcy, please visit our Bankruptcy Information page.

Contact Twohey Maggini, PLC

If you are considering both divorce and bankruptcy, it is important to fully understand your options. Contact us to schedule a free consultation. We offer flexible appointment times at our downtown Grand Rapids law office.