In most instances, yes. Unfortunately, financial difficulty is the cause of many a divorce, and I have even recommended that a consultation with a bankruptcy attorney be part of a divorce strategy.
What is also unfortunate is that the divorce attorneys themselves can sometimes get caught in the process and end up not getting paid.
Discharging Attorney's Fees Can Be a Bad Idea
Attorney fees are just like any other debt, such as credit cards or medical bills, that can be wiped out in bankruptcy. However, there are a couple of exceptions to this that you should be aware of:
- Using bankruptcy as a part of your divorce strategy when part of that strategy includes stiffing your lawyer. This can backfire, and has resulted in the fees being nondischargeable based on fraud.
- Using bankruptcy to negate a court order to pay your spouse's attorney's fees as a part of your support obligation. If an attorney fee is proven to be a Domestic Support Obligation (DSO), then bankruptcy cannot discharge it.
If you are in a situation where the fees for your attorney in a divorce are weighing you down along with other debt, like credit cards, and you just can't pay them, then bankruptcy may be the answer.
However, if you are trying to avoid paying your spouse's attorney's fees, or plotting to stiff your attorney, you might run into some trouble.
So What Do I Do?
Bankruptcy can be a key part of your divorce strategy, and can make things easier if you do it right. Having a bankruptcy professional work with your divorce attorney can make all of the difference!
So, if you live in Burlington, Camden, Gloucester, Salem or Cumberland County, are considering filing bankruptcy in conjunction with your divorce, and are ready to take action, o call me at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.
If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.
Not sure if bankruptcy is right for you? Take the quiz to the right to find out more!
Related Topics
If you liked this information and found it useful, then you might like or need these others:
- Be Careful About Trying to Discharge Your Divorce Attorney’s Fees in Bankruptcy
- Will a bankruptcy filing hold up my NJ divorce?
