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Filing for Bankruptcy during a Divorce in Missouri and Illinois

Having large amounts of debt often only exaggerates marital problems. If you have decided to call it quits in your marriage and you are carrying debt, bankruptcy may be a way to help the situation. In the current economy, many couples are finding that they cannot sell their house as they planned or that they are upside down in their mortgage with no way of refinancing. Missouri or Illinois Chapter 7 or Chapter 13 bankruptcy may be a way to deal with the debt and make the division of finances in the divorce a little easier.

As most bankruptcy lawyers in Missouri and Illinois would tell you, filing for bankruptcy before a divorce is generally an easier process. You can deal with your debts as a couple and then divide what is left in the divorce. But, if you need credit card debt help or protection from foreclosure during your divorce, it isn’t impossible to file for bankruptcy at the same time. Also, if the divorce court orders debts to be prepaid a certain way, it could be non-dischargeable.

Once either spouse files, the same automatic stay that prevents creditors from taking any further action will also prevent the divorce court from moving forward until permission is granted from the bankruptcy court. Permission is granted through relief from the automatic stay, which gives your St. Louis or Wentzville, Missouri or Belleville, Illinois bankruptcy attorney time to take care of your debt. This means that they cannot divide property or debt until permission is granted by the bankruptcy court but it is important to keep in mind, however, that it does not apply to any alimony, child support, or custody proceedings.

Obviously, a bankruptcy filing can complicate a divorce—and slow it down. But, it may be the best option to keep a couple from having to deal with their debt post-divorce. Asking yourself, “Should I file bankruptcy?” Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can find out exactly how Chapter 7 or Chapter 13 bankruptcy could help you during your divorce and more.

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