Family, Criminal & Children's Court Attorneys Since 1991

What happens when you file for bankruptcy after a divorce?

On Behalf of | Apr 12, 2022 | Spousal Support |

Some Wisconsin residents have financial trouble after getting a divorce. If you’re in this situation and struggle with debt after the end of your marriage, you might want to file for bankruptcy.

What happens when you file bankruptcy after divorce?

When you file for bankruptcy after divorce, it can help to stop any harassing calls from collection agencies. This is because an automatic stay goes into place upon filing. Creditors might have also contacted you threatening to file lawsuits against you due to owing them debts. If you were facing foreclosure or the repossession of your vehicle, filing for bankruptcy after your divorce can put all of these issues to a stop.

If a creditor or collection agency continues to harass you after the automatic stay applies, you can report them.

What debts can be discharged with bankruptcy after divorce?

Unsecured debts can be discharged once you file bankruptcy after your divorce. This includes debts such as credit card, personal loans, unpaid taxes that are several years old, medical debt, accounts with collection agencies and even student loans when you can prove hardship.

Meanwhile, certain debts cannot be discharged through bankruptcy. This includes anything that was ordered for you to pay by a judge as part of your divorce. If you were ordered to pay alimony or child support as part of the divorce settlement, you will still have to pay them. You are only excused from paying alimony or spousal support if your former spouse remarries or passes away.

Also, if you owed your now former spouse a portion of money as part of a property settlement prior to the divorce, you will still owe it after your divorce. Bankruptcy cannot protect you from that debt.

Attorney’s fees are also expected to be paid if you have filed for bankruptcy after a divorce.

Filing for bankruptcy after divorce might be necessary when your debts are overwhelming. Remember that it’s not the solution to all your debts.