If you are divorcing and your spouse decides to filing for bankruptcy protection, it can throw a wrench into the divorce proceedings, at least from the standpoint of the division of marital property and debt. When a spouse files for bankruptcy, an automatic stay goes into effect during the bankruptcy proceeding which can last several months or longer.
As part of the bankruptcy process, a new bankruptcy estate is created made up of all the interests of the debtor and the debtor’s spouse in community property, which may be sold to satisfy creditors depending on the type of bankruptcy. This is not always smooth sailing so it is important to work with an attorney who understands how bankruptcy impacts divorce or post-judgment divorce proceedings to protect your financial interests in a divorce.
Divorce Proceedings Exempted from the Automatic Stay
Fortunately, despite the bankruptcy filing, the establishment of paternity, the establishment or modification of an order for child support and alimony, custody and visitation, obtaining a divorce decree, and issues surrounding domestic violence are exempted from the automatic stay. Once child support and/or alimony is ordered, bankruptcy does not discharge the support obligation.
Contact an Experienced Divorce Lawyer for Help
Sometimes divorce and bankruptcy go hand in hand and it is important to understand your obligations and your rights. If you have questions regarding bankruptcy in a divorce, contact Probst Law Office for more information today at 414-210-3135.