Bankruptcy and Divorce

Attleboro, MA Bankruptcy During a Divorce Attorney

When Debt Relief and Divorce Issues Overlap

When spouses are divorcing and one or both of them file for bankruptcy, it can make the divorce issues more difficult to resolve. It makes sense to work with an experienced attorney to determine the best way to move forward.

At Volterra, Goldberg & Jacobs, we can help you identify all of your legal options for debt relief, including bankruptcy. Contact us to schedule a confidential consultation. From our office in Attleboro, we serve clients throughout Southeastern Massachusetts.

How Bankruptcy Affects Divorce Proceedings

Sometimes couples face significant financial problems in addition to their marital problems and must consider filing for bankruptcy. While some spouses file a joint bankruptcy petition while the divorce action is pending, sometimes only one spouse files for bankruptcy protection. There can be lots of reasons why one spouse files for bankruptcy during a divorce and the other does not. For example, one spouse may have owned a small business and given a personal guarantee on its debts. In a case like that, a bankruptcy filing may be needed for the spouse who gave the guarantee to get out from under that debt.

No matter what the reason is for one spouse filing bankruptcy during a divorce, the implications for the marital property settlement and any support obligations need to be addressed. The non-filing spouse may need to take steps to protect his or her interest in marital property from the bankruptcy trustee or from creditors. For example, bankruptcy court judges and trustees may try to bring marital assets, such as the marital home, into the bankruptcy case. The spouse filing for bankruptcy must consider that even in bankruptcy, a spouse will normally not get relief from family support obligations.

If you are facing issues like this, it makes sense to work through them with an experienced lawyer. Our firm can help you protect your interests so that bankruptcy − even when it occurs during a divorce − brings about the relief it is intended to. Debt relief is a start, and then there's the emotional relief of knowing that your money problems are being addressed and that the constant clamor of the bill collectors will stop.

Contact Volterra, Goldberg & Jacobs, Law Counsellors, Inc.
To consult with one of our lawyers about your legal matter — whether a personal injury lawsuit, a divorce or child custody dispute, bankruptcy and divorce, or another type of legal question — contact our office today. Call (508) 222-1463 or contact us by e-mail.