Bankruptcy and Divorce
Divorce can be difficult in itself, but adding the stress of debt and bankruptcy can make it unbearable. It isn’t uncommon for one or both spouses to declare bankruptcy before or after a divorce. Debts and assets are divided and sometimes it can be too much for one partner or both to handle.
One thing to remember about divorce and assigning debt is that it’s a court-ordered judgment. When you file for divorce or enter into a separation agreement, stipulation or settlement of divorce, and one party agrees to pay off the marital debts, it is not likely to be removed by bankruptcy, at least in chapter 7. Chapter 13 can still provide a way to discharge these obligations. Creditors have no interest in how or who pays the debts, so even in bankruptcy they can go after the other spouse if the debt is co-signed to that person also.
A common question that is often asked is can bankruptcy prevent eviction? 