Wesley D. Wornom, Attorney at Law, represents people throughout Northern Virginia including residents of Prince William County, Woodbridge, Dale City, Lake Ridge, Occoquan, Montclair, Dumfries, Quantico, Quantico Marine Base, Manassas, Manassas Park, Gainesville, Haymarket, Catharpin, Bristow, Stafford, Fairfax, King George, Caroline, Fredericksburg, Spotsylvania County, Loudoun County, and Fauquier County.

The information you obtain on this site is not, nor is intended to be, legal advice. You should contact an attorney for individual advice on your own situation.

Bankruptcy & Divorce

Bankruptcy and Divorce Sometime Occur Together

Financial difficulties are a leading cause of divorce. Even where financial difficulities don't exist prior to a planned divorce or separation, dividing a family reduces available income and increases expenses because each spouse will have a household with only a portion of the combined incomes.

It Matters How and When You File Divorce and Bankruptcy

Bankruptcy affects many aspects of divorce. If a debt has been discharged in a bankruptcy, the family law court cannot order you to pay that amount or to pay an equivalent amount to your spouse, either directly, or indirectly. If on the other hand, you enter into a property settlement agreement and agree to pay certain debts, you probably cannot get out of paying such amounts, at least in a Chapter 7 Bankruptcy. More complete relief from these obligations is available in a Chapter 13 Bankruptcy case. We file both types.

If you are divorced first, and then file bankruptcy, you may have less disposable income to pay spousal support in the divorce case. If you file bankruptcy first and wipe out most of your debts, you might have much more income to pay spousal support. Which is better? It depends upon whether you are the party seeking support, or the party that doesn't want to pay support. Each case is different.

If you file bankruptcy after separation, the allowed expenses under the IRS means testing may be less onerous. If you file together while living together, your combined income will be higher and may force you into a Chapter 13 bankruptcy, whereas if you filed separately, you might be exempt from the means testing. Again, each case is different.

How Do You Decide Whether to File for Divorce or Bankruptcy First?

Talk to an attorney familiar with both areas of the law. If you are both contemplating a divorce and possible bankruptcy, you should meet with the attorney by yourself. Once an attorney has met with both parties, that attorney cannot give advice to one party that is adverse to the other party about the same case. Deciding whether to file a Chapter 7 or Chapter 13 is vital.