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Filing For Divorce During Chapter 7 Bankruptcy Proceeding

Posted By admin || 4-Nov-2008

Many married couples who file for bankruptcy together unfortunately find themselves filing for divorce before their Chapter 7 bankruptcy has been discharged. So what happens when a couple wants to part ways but their Chapter 7 bankruptcy is still under review? Well, actually a joint bankruptcy, which can only be filed by spouses is two bankruptcy filings merged into one.

So, if the married couple chooses, they can separate their cases. In order to separate the joint filing a motion to "deconsolidate" the bankruptcy will need to be filed with the bankruptcy court. After the bankruptcy cases have been separated each debtor can make an independent decision about the course of their case.

Warning: Deconsolidating a bankruptcy case may not be in the best interest of either party. Consult with a bankruptcy attorney before separating a joint bankruptcy.

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