Cincinnati Family Law & Divorce Blog: How Does Bankruptcy Impact Divorce?

It is not uncommon for the fields of bankruptcy law and divorce law to intersect. One way this can happen is if one or both parties file for bankruptcy while a divorce action is pending.  Another way is if one party seeks to be relieved (“discharged”) from an obligation that arose out of a divorce or dissolution by filing for bankruptcy. This blog post will attempt to give a general overview of what happens in these specific situations.   If a divorce action is pending and one or both parties file for bankruptcy, a court can still carry on aspects of the divorce case.  While the law provides an automatic suspension (“stay”) of judicial proceedings, there are several exceptions.  A court can still hear cases to establish paternity, establish or modify spousal support or child support, hear cases concerning child custody or visitation issues, or hold hearings related to domestic violence (11...