Divorce and Bankruptcy?


Filing of Bankruptcy During Divorce
Along with some narrow exceptions, the law of automatic stay does applies to divorce proceedings. It would prevent completion of divorce until the stay is lifted or expired or is terminated. A spouse can request the court asking for the motion to lift the stay to complete the divorce process. Failure to seek relief from stay can lead to swift contempt penalties from the court. It can be used as an abusive process as one spouse is abandoning its responsibilities toward the distribution of marital assets in community states like Nevada. The combination of both bankruptcy and divorce are done in different judicial forums as bankruptcy is filed in federal courts and divorce is filed in district courts on a state level and their interaction is dangerous to the interests of clients. It is complex and should be avoided

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