Bankruptcy

FIRST you file Bankruptcy, THEN you get Married!

By Joseph McDaniel, Esq.

The relationship between bankruptcy and domestic relations law is messy and goofy because Bankruptcy is mostly a Federal thing, and divorce is mostly a State thing.

To complicate it further, the Bankruptcy Code incorporates a bunch of State Law (for instance, the State Law of property in your State).

And community property states are their own little worlds, and each one is slightly different from the others.

Does this sound like a recipe for disaster? That's because it is.

Here's one general rule to live by: your life is less complicated if you file your bankruptcy first, get your discharge, and THEN get married, as opposed to getting married and saying, "You know, I ought to file a bankruptcy just for myself today!"

Generally, the question that comes up is "Can I file a bankruptcy for myself in Arizona without affecting my spouse in any way?"

The answer is simple: maybe, sorta, kinda.

There's going to be SOME effect. It may well be trivial (the trustee in your case wants to see the tax returns filed by your spouse for the last three years) or it may be huge: the trustee demands that all of the income of your spouse goes in to fund your mandatory Chapter 13 Plan.

Depends on the facts of your situation.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on August 10, 2009 (boomark / email).