By Jessica M. Cotter, Esq.
There are many reasons people file for a Divorce. In my ten
years experience the most common reason is that people are having financial
issues and the current economy has made this even more apparent. It has lead
more people to make very difficult decision to file Bankruptcy.
When there is a divorce case before the family court and
only one party files for bankruptcy the family court has no choice but to stop
all proceedings because bankruptcy is in federal court. The Bankruptcy law states that once a
bankruptcy is filed all legal proceedings in any court are stopped until the
further order of the bankruptcy judge, this is called an automatic stay. The bankruptcy
is not done until the court enters a discharged, which means that most or all
of the unsecured debts of the party who files the Bankruptcy are wiped out and
they start again with a clean slate.
If there are issues regarding legal decision making
(custody), parenting time, child support and spousal maintenance you can ask
the bankruptcy court to lift the automatic stay, which the court does usually
grant. This gives the power back to the divorce court to handle just these
issues. The court also cannot divide any of the debts or assets of the parties
until the discharge is entered. The
discharge of community debt by one party may force the other party to file bankruptcy
to as well, in order to protect them from the creditors from the marriage.
If this happens to you please contact an experienced Family
Law attorney and a Bankruptcy attorney in your area. Some attorneys and law firms handle both
types of matter.
The Law Firm of Jessica M. Cotter, P.L.L.C.
18301 North 79th Avenue, Suite F-186
Glendale, Arizona, 85308
602-843-3004
Jmcotterlaw.com
Jessica.Cotter@azbar.org
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