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Filing for Texas divorce and bankruptcy can be challenging

Sunday, June 24, 2018

Given the fact that the primary issue most couples argue about is money, it should come as little surprise that financial strife and separations often go hand in hand. However, if a Texas divorce takes place at the same time as the couple is declaring bankruptcy, it can add a new level of challenge to an already difficult situation. Thankfully there are some ways to simplify the process.

Filing for bankruptcy prior to filing for divorce can help to simplify the divorce if issues like property settlements are contested by one or both parties. Dividing debt is no longer an issue if debts are discharged through the bankruptcy filing. This can help clear the table for other, more pressing issues like child custody.

It is important to note that liability for child support payments or alimony cannot be discharged through bankruptcy. However, a spouse declaring bankruptcy following a divorce can have his or her liability for a joint debt forgiven. This has the unfortunate side effect of saddling the other party with the entire joint debt. This is why it may be more beneficial for both parties to declare bankruptcy as a couple prior to the divorce -- while it slows down divorce proceedings, it can leave both parties in a better financial situation moving forward.

Texas divorce is already a challenging process, and adding financial strife and bankruptcy to the equation can make it seem insurmountable. But if both parties work together towards the common goal of moving forward in their individual lives free both of debt and a union neither desire, it can be overcome. Seeking support for both the divorce and bankruptcy issues may also be helpful.

Source: lansingstatejournal.com, Divorce, bankruptcy sometimes go hand-in-hand, Gene Turnwald, Sept. 27, 2013

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