{"id":861,"date":"2012-08-13T19:30:21","date_gmt":"2012-08-13T19:30:21","guid":{"rendered":"https:\/\/thedurstfirm.com\/?p=861"},"modified":"2012-08-13T19:31:40","modified_gmt":"2012-08-13T19:31:40","slug":"will-a-bankruptcy-filing-impact-my-divorce","status":"publish","type":"post","link":"https:\/\/thedurstfirm.com\/?p=861","title":{"rendered":"Will a bankruptcy filing impact my divorce?"},"content":{"rendered":"
\n

Will a bankruptcy filing impact my divorce?<\/span><\/strong><\/p>\n

By: Sandy Durst, Esq.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Lynch, Osborne, Gilmore & Durst<\/p>\n

A difficult economy often leads to divorce.\u00a0 Difficult financial times also result in an increase in bankruptcy filings.\u00a0 It is important that both you and your attorney understand the interplay between divorce proceedings and bankruptcy proceedings.\u00a0 Bankruptcy may be a viable, if not necessary, legal alternative for many people faced with \u00a0credit card debt, declining real estate values, and unmarketable of real estate combined with unemployment. However, it is important to keep in mind how bankruptcy can impact divorce proceedings and financial obligations such as alimony, child support, and equitable distribution.<\/p>\n

Divorce proceedings take place in State Court while Bankruptcy cases are heard in Federal Court. The assets and liabilities that comprise the marital estate may also comprise the bankruptcy estate.\u00a0 This overlap puts one pool of assets and liabilities under the jurisdiction of two courts.<\/p>\n

Our legal system is structured in a way that the Federal Court and federal statutes take precedent over the State Courts. \u00a0This means that \u00a0although a divorce may be pending in the State Court and orders may have already been entered by the State Court, once a bankruptcy petition is filed many of the issues become subject to review and\/or approval by the Federal Bankruptcy Court.<\/p>\n

The Federal Bankruptcy Code imposes an “automatic stay” upon any other pending judicial proceeding.\u00a0 \u00a0This provision, for example, prevents a creditor from suing to collect their debt while the debtor is in the bankruptcy proceeding. \u00a0It also specifically stays the allocation \u00a0or \u00a0distribution \u00a0of \u00a0property \u00a0or \u00a0assets in \u00a0a \u00a0divorce \u00a0case \u00a0until \u00a0the \u00a0bankruptcy \u00a0is completed. Clearly, the automatic stay can have a severe impact on divorce proceedings. The automatic stay does not not stay the imposition or collection of alimony or child support, the issues of child custody or the dissolution of the marriage itself.\u00a0 \u00a0These issues may be decided by the State Court but no assets can be distributed without the permission of the Bankruptcy court..<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A bankruptcy allows the debtor to discharge certain liabilities.\u00a0 Alimony and child support obligations are not dischargeable in bankruptcy and will remain an obligation of the debtor.<\/p>\n

Significant problems can also arise if parties continue in joint ownership of property or remain jointly liable for debts after the divorce.<\/p>\n

At a time when bankruptcy filings have reached unprecedented numbers, care should be taken in drafting the terms of the divorce settlement so that the terms comply with the law and meet the expectations of both parties<\/p>\n<\/div>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Will a bankruptcy filing impact my divorce? By: Sandy Durst, Esq. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Lynch, Osborne, Gilmore & Durst A difficult economy often leads to divorce.\u00a0 Difficult financial times also result in an increase in bankruptcy filings.\u00a0 It is important that both … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[28,27],"tags":[40,39,38,29,32],"class_list":["post-861","post","type-post","status-publish","format-standard","hentry","category-durstfirm-news","category-durst-on-divorce","tag-alimony","tag-bankruptcy","tag-child-support","tag-divorce","tag-durst"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6omM8-dT","jetpack_likes_enabled":true,"jetpack-related-posts":[{"id":1011,"url":"https:\/\/thedurstfirm.com\/?p=1011","url_meta":{"origin":861,"position":0},"title":"Divorce and Taxes: What you need to know","author":"Sandy Durst","date":"February 16, 2013","format":false,"excerpt":"A divorce will surely impact your tax filing.\u00a0 The following points are based on my 14 years of experience as a NJ divorce attorney.\u00a0 You should consult with an accountant or qualified tax preparer to determine how to best prepare your returns.\u00a0 If you were divorced at any time in\u2026","rel":"","context":"In "Durst Firm News"","block_context":{"text":"Durst Firm News","link":"https:\/\/thedurstfirm.com\/?cat=28"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":921,"url":"https:\/\/thedurstfirm.com\/?p=921","url_meta":{"origin":861,"position":1},"title":"Divorce and Dating","author":"Sandy Durst","date":"October 21, 2012","format":false,"excerpt":"For most people, going through a divorce is a period of chaos and uncertainty. It is also a time of transition. For many people, part of their transition from married their married life includes the resumption of dating. Whether or not one decides to date while their divorce is pending\u2026","rel":"","context":"In "Durst Firm News"","block_context":{"text":"Durst Firm News","link":"https:\/\/thedurstfirm.com\/?cat=28"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1097,"url":"https:\/\/thedurstfirm.com\/?p=1097","url_meta":{"origin":861,"position":2},"title":"Changing the last name of the child","author":"Sandy Durst","date":"June 2, 2013","format":false,"excerpt":"It is common in divorce proceedings for the former wife to change her surname.\u00a0 The law allows her to adopt any surname, not just her maiden name, as long as it is not being done for fraudulent purposes or to avoid creditors or criminal prosecution.\u00a0 Recently, there has been an\u2026","rel":"","context":"In "Durst Firm News"","block_context":{"text":"Durst Firm News","link":"https:\/\/thedurstfirm.com\/?cat=28"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2603,"url":"https:\/\/thedurstfirm.com\/?p=2603","url_meta":{"origin":861,"position":3},"title":"Is it time for a change?","author":"Sandy Durst","date":"January 5, 2018","format":false,"excerpt":"Having just flipped the calendar to a new year, many people make New Year\u2019s Resolutions. \u00a0Often, these resolutions concern habits or behaviors someone may want to change in order to improve their daily life. \u00a0For many people, one such change is filing for divorce. There are multiple articles and reports\u2026","rel":"","context":"In "Durst Firm News"","block_context":{"text":"Durst Firm News","link":"https:\/\/thedurstfirm.com\/?cat=28"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":934,"url":"https:\/\/thedurstfirm.com\/?p=934","url_meta":{"origin":861,"position":4},"title":"Martital Fault can be a factor in alimony determinations","author":"Sandy Durst","date":"October 25, 2012","format":false,"excerpt":"In an effort to reduce much of the emotional toll of a divorce, NJ law is generally disinclined to use marital fault as a factor when making alimony determinations.\u00a0 Deciding which party is at fault for the breakdown can be a difficult, time consuming, expensive, and emotionally draining process when\u2026","rel":"","context":"In "Durst Firm News"","block_context":{"text":"Durst Firm News","link":"https:\/\/thedurstfirm.com\/?cat=28"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1362,"url":"https:\/\/thedurstfirm.com\/?p=1362","url_meta":{"origin":861,"position":5},"title":"Court reluctant to set aside arbitrator’s decision in NJ divorce case","author":"Sandy Durst","date":"April 25, 2015","format":false,"excerpt":"With the backlogs in many county family courts throughout New Jersey, divorce litigants are exploring alternative methods of resolving their divorce proceedings.\u00a0 The traditional litigation can be time consuming.\u00a0 One such method of alternate dispute resolution (ADR) is arbitration. \u00a0 There are potential benefits to arbitration.\u00a0 Those benefits include the\u2026","rel":"","context":"In "Durst Firm News"","block_context":{"text":"Durst Firm News","link":"https:\/\/thedurstfirm.com\/?cat=28"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=\/wp\/v2\/posts\/861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=861"}],"version-history":[{"count":3,"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=\/wp\/v2\/posts\/861\/revisions"}],"predecessor-version":[{"id":864,"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=\/wp\/v2\/posts\/861\/revisions\/864"}],"wp:attachment":[{"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedurstfirm.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}