How does bankruptcy affect my divorce?
If you only one of you file for bankruptcy before the divorce and you have some joint debts, you will no longer be responsible to the creditor; however, your wife or husband will still be liable to the creditor for the full amount. Although you will no longer be liable to the creditors, the debt may still be considered as part of the divorce. In other words, if you had a joint credit card of $20,000 and you discharged your portion of this debt in bankruptcy prior to the divorce; however, your husband or wife did not, then he or she will still be liable for the full amount. Therefore, the court may award the party who did not file for bankruptcy more assets on his or her side, because she or he will have to continue paying for that debt, even though you are no longer liable for it. It will have different effect depending on what your unique situation is. If you both file for bankruptcy before the divorce and discharge all of your debts, then debts will not be an issue in the divorce. It is to your benefit to seek the advice of an attorney before you file for bankruptcy or file for divorce.