Transcript for Divorce Advice: Bankruptcy – Top Divorce Lawyer Marilyn Stowe 

If you think that there are very serious financial issues, and it’s fair to say that coming out of recession more people do tend to go bump than during one, then you must take legal advice straight away to discuss your own situation.

It makes sense to get in first and get your finances resolved if the marriage has broken down. If the spouse goes bankrupt during the proceedings then the question is: is it wise to continue or is it better to wait until the spouse comes out of bankruptcy?

Your claims and an award don’t disappear once the spouse is made bankrupt so they still stay in play. Sometimes people think: “If I go bankrupt I can get out of my obligations on divorce”. No, you can’t.

However, assets might reduce so therefore, if you think your spouse is facing bankruptcy or might try the bankruptcy trick to avoid paying out, get legal advice as quickly as you can.

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4 comments

andrea - January 30, 2015 at 12:58am

Bankrupt is carried to.force family home sold and cheaper choice from men unfair to leave ex wife and children to pick up pieces .

Luke - January 30, 2015 at 2:51pm

If people are going bankrupt to avoid paying the court settlement doesn’t that strongly suggest that the court settlements are unreasonable ?
Who in their right mind would choose bankruptcy as a preferable avoidance strategy ?

Andrew - January 30, 2015 at 5:41pm

It is profoundly wrong that lump-sum orders and maintenance are not affected by the payer’s bankruptcy.

They should be proved like other debts – postponed to outside creditors’ claims – and released on discharge so that the husband can rebuild his life. That is the purpose of bankruptcy, isn’t it?

Marilyn, you may know the answer: if a man (usually) is ordered to pay a lump sum and before he pays the wife goes bankrupt who gets the money: she or her creditors?

GH - July 13, 2015 at 3:03pm

i lest my xpartner ( not married to him ) 4 half yrs ago with 3 kids i just found out he went bancrupt 2011 hes contacted me to dign my name off,,,,, what can i do help

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