A distraught couple sitting on a couch.

How Divorce Impacts Filing For Bankruptcy

Divorce and bankruptcy can both make significant impacts on your personal and professional lives. However, when you enter them simultaneously, it can be draining for your emotional health and uproot many areas of your life.

If you and your current spouse have chosen to pursue divorce alongside filing for bankruptcy, there are several vital facts you should consider.

Never File for Both at the Same Time

The implications of filing for both of these legal processes simultaneously can create an incredibly complex situation.

If you tried to file for bankruptcy and divorce at the same time, one of the primary issues you would face is the dispersal of your assets. When your bankruptcy papers are filed, a protection called an “automatic stay” is put into place, which prevents any of your creditors from reaching out to you while placing an immediate freeze on your assets and property.

This is done so the court can begin the process of observing your debts and which portions of your property can compensate for a discharge. This freeze remains in effect until the bankruptcy process is complete.

When the divorce court begins deciding on the dispersal of your assets, the automatic stay makes it nearly impossible for the court to do so. This only has the ability to create painstakingly long legal proceedings and brings upon large amounts of unnecessary stress for all parties involved.

Hiring an Attorney

If you and your spouse agreed on hiring a divorce attorney together, you would have to look for a new one if you are also trying to file for bankruptcy. Attorneys cannot represent clients with a conflict of interest, so if you or your spouse decides to file bankruptcy, it forces you to become opponents in a separate legal matter.

How Can Help

Are you currently entangled in a divorce or filing for bankruptcy? Our experienced team of lawyers is here to stand by your side to help you get all that you deserve. These situations are messy and complicated. Don’t try to do it alone; we are here to help.

Contact our award-winning team today at to schedule your free consultation.