When You Ex Files For Bankruptcy During Or After A Fort Lauderdale Divorce

Going through a breakup is stressful enough on its own. If your spouse files for bankruptcy at the same time or shortly after your Broward County divorce, it can create a whole new set of financial problems.

Understanding how bankruptcy affects Florida divorce proceedings helps protect your rights and financial security. Our experienced Fort Lauderdale divorce attorney helps clients in these complex cases and explains the potential impacts.

How Bankruptcy Affects Fort Lauderdale Divorce Proceedings

When a spouse files for bankruptcy, federal law triggers an automatic stay, which is a legal order that immediately halts most collection efforts and court proceedings against the person who filed.

Under the U.S. Bankruptcy Code (11 U.S.C. Section 362), an automatic stay can freeze the property division process in your Broward County divorce. This means assets can’t be distributed until the bankruptcy is resolved. However, the automatic stay does not stop everything. Exceptions include:

• Alimony payments and child support;
• Income withholding, intercepted tax returns, and other enforcement actions related to Domestic Relations orders;
• Joint debts assigned to your ex (which remain your problem with creditors);
• All marital debts, depending on the type of bankruptcy filed.

One important note: If your ex was ordered to pay you as part of a property settlement, that obligation may be treated differently than a Domestic Support Obligation and could potentially be affected by a bankruptcy discharge.

How To Protect Your Rights When an Ex Files for Bankruptcy

If your ex-spouse files for bankruptcy during or after your Broward County divorce, you need to know your options. According to the U.S. Courts, interested parties have the right to file claims and challenge the dischargeability of certain debts. Taking the following steps can help you protect your rights and financial interests:

• Review your divorce decree and marital settlement agreement carefully to identify which obligations are classified as support versus property division.
• File a proof of claim in your spouse’s bankruptcy case if you are owed money, including unpaid alimony, child support, or property settlement payments.
• Consult a Fort Lauderdale divorce attorney as soon as possible, since deadlines for challenging the dischargeability of debts are strict and easy to miss.
• Consider seeking relief from the automatic stay if the bankruptcy filing is preventing your Broward County divorce from moving forward.

The intersection of bankruptcy and family law is one of the most complex areas a divorcing spouse can face. Get the professional legal help you need to protect your rights.

Request a Consultation Today With An Experienced Fort Lauderdale Divorce Attorney

If your spouse files for bankruptcy either during or after a Fort Lauderdale divorce, it could impact your rights regarding property division, joint debts, and support. To protect what you are owed, contact The Law Office of Sandra Bonfiglio, P.A. right away.

We provide caring support and professional legal representation to clients throughout Broward County. For trusted legal help, contact our office. Request a consultation today with an experienced Fort Lauderdale divorce attorney.

Sources:

uscode.house.gov/view.xhtml?req=granuleid:USC-1999-title11-section362&num=0&edition=1999

uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section523

uscourts.gov/services-forms/bankruptcy