Divorce & Bankruptcy

By Jamie L. Harris

Divorce and bankruptcy are closely related, especially since many divorces are caused by financial problems.  A couple going through divorce should explore if a joint bankruptcy filing is beneficial.

First, a couple must be legally married to file a joint bankruptcy petition.  A couple can be separated or living apart and still be eligible to file a joint bankruptcy petition. Bankruptcy can be an excellent tool for both parties to discharge joint marital debt.

If your spouse is unwilling to explore potential bankruptcy options, you can file a petition without your spouse or you can your spouse can file separate bankruptcy petitions.

In Kentucky, domestic support obligations such as alimony and child support cannot be discharged in a bankruptcy. You should be careful not to assume certain liabilities of your spouse in a property settlement agreement. However, back support can be consolidated and paid off through a Chapter 13 bankruptcy.

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