Continuing our discussion on divorce and bankruptcy from the previous post Divorce and Bankruptcy Part 1, we now look on joint filing of bankruptcy, even if they are going through a divorce.

While it may be possible for both parties to cooperate with each other long enough to file a Chapter 7 Bankruptcy, I strongly discourage a divorcing couple to file a Chapter 13 Bankruptcy.  In a Chapter 13 Bankruptcy, the debtor(s) are required to pay a bankruptcy trustee a monthly payment over the life of the bankruptcy, 3 to 5 years.

If the debtors get divorced during a Chapter 13 Bankruptcy, it’s unlikely that they will continue to cooperate and each continues to contribute to that monthly payment.  It more likely that one of the debtors will just stop paying completely, leaving the other to carry the burden.  Even if the divorce court orders one spouse to make the payments, typically these situations have a high failure rate.  The spouse ordered to make the payments may not be able to afford it, may not want to continue with the bankruptcy and will likely be upset that they have to carry the burden of paying for it.

For your best option when filing bankruptcy while divorcing, be sure to consult a bankruptcy attorney.