Bankruptcy and Divorce: What to Know
If you, your spouse, or both of you are in financial trouble, it is important to understand how bankruptcy might affect your divorce and what steps you need to take to avoid setbacks. You May Need Permission to Proceed with Your Divorce If you have already filed for bankruptcy, you will likely need permission from the bankruptcy court to move forward with dividing property, setting support payments, or finalizing other parts of your divorce. Custody decisions can typically continue without delay, but anything that involves money or property must go through the proper process with the bankruptcy court. When you both agree, getting this permission is usually straightforward with a consent motion and order. However, if you can’t agree, a contested motion may need to…