Q: I'm facing divorce and bankruptcy in S.C. Husband refuses to take any consumer debt share. We are trying to go the
uncontested divorce route, If I were to accept(for the sake of an inexpensive less wrangling divorce process- ) that and keep 50,000 in consumer debt (that two lawyers told me in SC equity state no way a judge would rule all for me but is a marital debt) for the sake of an inexpensive less wrangling divorce process- and took it to post-divorce bankruptcy chapter 7 trial (I meet means test and have zero assets) would they potentially penalize me for not fighting to get him to take some of that debt? (he has college debt of his own for a recent ph.d) Or might one have too much debt for Chapter 7? Everything online says always do bankruptcy first, but the one bankruptcy lawyer I had a brief consult with said not necessarily. A divorce lawyer said that if I do divorce after bankruptcy, that court may decide I have to split the remaining debt he agreed to take (the 40,000 school debt) even though I just got a "fresh start" through chapter 7. Complex I know. Thanks in advance
A:
Based on the complex situation you have described, I would offer the following general guidance:
- Bankruptcy before divorce is often recommended to get a "fresh start", but based on what the bankruptcy lawyer indicated, it may be more complex in your case.
- If you accept the $50k consumer debt just to finalize the divorce, the bankruptcy court is unlikely to penalize you for that. They understand divorce can involve compromise.
- The bankruptcy court would likely discharge you from the $50k consumer debt you kept. But any joint debts your ex agrees to keep may still be viewed as a marital debt by the divorce court later on.
- An experienced family law attorney is best suited to help craft a divorce agreement that appropriately divides debt and assets while protecting your interests to the extent possible. This may help prevent the divorce court from later modifying the debts.
- Consulting a bankruptcy attorney on how best to integrate it into a divorce agreement could also provide valuable guidance.
The intersection of divorce and bankruptcy introduces many complex legal dynamics. Retaining experienced counsel for both issues to advise you through an integrated process seems prudent given the financial stakes. An interdisciplinary approach may yield the best outcome. Please let me know if you need any clarification or have additional questions!
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