Can I file for a bankruptcy right after filing for a divorce?
Can I file for a bankruptcy right after filing for a divorce?
There are two sets of laws here, one is federal law and the other is state law. If you get a divorce, and the divorce agreement transfers all of the debts to one party, while the other party keeps all of the assets and a bankruptcy is subsequently filed, a creditor or trustee may think that is some type of fraud occurring here. For example, you two only got a divorce to get rid of your debts. If this is the case the bankruptcy can be reversed subjecting you to prosecution. That being said, the number one and number two reasons that people get divorced in California is due to infidelity and financial problems. If there is not an inequitable distribution during your divorce proceeding, and you wait for a period of time (sometimes up to a year) to see if you can actually find a way to pay your debts and then are forced into filing a bankruptcy, it usually is not deemed to be fraud. If you are considering both a bankruptcy and a divorce, you should contact legal counsel to thoroughly understand your legal rights and ramifications. For more information on this or any of our legal services, please call us a for free legal consultation!
