Hello,
My husband and me decided to file for divorce. We've been married for 7 years and have one, 5 years old, child.
We've been told that since we have a large debt, it might be a good idea for us to file for bankruptcy before the divorce.
Is that something you can help us with during the divorce mediation process? Is it something you recommend?

Thanks,
J.

Hi J.

Certainly, where there are a lot of debts in the family, division of the debt will be one of the topics that would be discussed in a divorce mediation process.

The new bankruptcy laws are very complicated and - my understanding - are not as effective in giving debtors a new start, as used to be possible. Debts used to be forgiven, so that filing bankruptcy would give you a clean slate, but that is no longer the case. If you have incomes, the bankruptcy trustee will restructure your debt - possibly forgive a portion, but not all of it - to allow you to figure out a payment plan, and move forward.

However - you should definitely consult with a bankruptcy attorney, regarding whether to file for bankruptcy; when; whether both or one should do that - and how the timing -whether before or after - may affect the divorce.

If you want to give me a call, or send me an e-mail, I can refer you to a bankruptcy attorney.

Rachel