Q: If I'm filing bankruptcy an. Want to.file for divorce does that affect the.bankruptcy

A: Although bankruptcy and divorce are separate legal proceedings in separate courts, anyone considering both should be aware of areas of overlap and how that may impact one or both cases.

For example, divorce alters household size and household income, which may impact eligibility for Chapter 7 bankruptcy or the payment required in Chapter 13 bankruptcy.

And, some debts arising out of a divorce proceeding may not be discharged in bankruptcy.

Sometimes, it makes sense for spouses to file bankruptcy jointly before divorcing, while in other cases one spouse may choose to file alone.

Anyone considering both would do well to talk with a bankruptcy attorney and a divorce attorney before taking any action, in order to fully understand the options and make the best decision about timing, filing jointly or singly and the type of bankruptcy case that would be more appropriate.

Kevin Chern is an Illinois licensed attorney who has practiced in federal consumer bankruptcy law and consumer protection law for the last 21 years. He is the Managing Partner of UpRight Law. Kevin's law partners are licensed in all 50 states and work in conjunction with Mr. Chern to provide bankruptcy and consumer legal services in all 50 states. Mr. Chern's answers to the questions are intended for informational purposes only and are not intended to be legal advice. Use of the answers does not establish any attorney-client relationship. For legal advice, you should consult with an attorney licensed to practice law in your state and with appropriate expertise.

A: The automatic stay order issued after filing of a Chapter 13 Bankruptcy can result in the domestic relations court refusing to enter an order as to division of property in the divorce case, because the marital property is part of the newly formed bankruptcy "estate." In most cases it makes sense to discuss this with your attorney, and to consider filing the divorce case before the bankruptcy case is filed ( to avoid having to wait for the completion of the Plan). I have seen cases where the domestic relations court either is not aware of the requirements of the bankruptcy stay order or disregards it, and issues the Final Decree in the divorce case anyway. Consider Chapter 7 with your attorney if at all possible, and in the context of a joint case with your spouse (if you are focused on addressing your debts via bankruptcy prior to divorce). A joint bankruptcy case permits the spouses (assuming they file jointly) to double their exemptions on the marital property and thereby keep most if not all property before filing for divorce. Every case unfortunately provides a completely different set of facts, and the law may apply differently from case to case. It is extremely important to sit down and list ( and value accurately) all of your property before meeting with your bankruptcy attorney. You do not want to start transferring or selling assets before meeting with your bankruptcy attorney.