Bankruptcy In Virginia Divorce Proceedings: How To Protect Your Credit And Property In Virginia

Disputes over money and financial stress are among the most common reasons for getting a divorce in Virginia. When overwhelming debt collides with the end of a marriage, many spouses consider bankruptcy as a way to regain stability.

However, timing and strategy matter. Filing a bankruptcy petition before, during, or after a divorce can significantly affect property division, credit, and financial recovery. If you are facing a breakup and struggling with debt, our experienced Virginia divorce attorney explains how it could impact your case and factors to consider in deciding when to file.

How Bankruptcy Can Affect Your Virginia Divorce Case

Bankruptcy helps honest consumers make a fresh financial start. However, it is not an easy process, and if you are getting a divorce in Virginia, it becomes even more complex.

Bankruptcy may delay certain parts of your divorce and affect what assets are available for distribution under Section 20-107.3 of the Virginia Code. Common impacts include:

• The automatic stay temporarily halts debt collection efforts and may pause some divorce-related proceedings.
• Whether property is considered marital or separate depends on when the debts were incurred.
• The discharge of unsecured debts and how that affects each spouse’s financial obligations
• Treatment of jointly held debts and how creditors may pursue one spouse if the other files.
• How exemptions may limit which assets are available to divide during the divorce.

Because Virginia bankruptcy courts and family courts handle different issues, the timing of a filing can shape the entire outcome of your Loudoun divorce case.

Choosing Whether to File Bankruptcy Before, During, or After a Divorce in Virginia

When getting a Virginia divorce, your financial situation and your current relationship with your spouse determine when it is the best time to file for bankruptcy. Filing at the wrong moment can slow your case or leave you responsible for debts you did not expect to carry after divorce.

When deciding on timing, consider:

• Filing jointly before divorce may eliminate more shared debt and reduce costs.
• Filing during the divorce may delay property division until bankruptcy is resolved.
• Filing after divorce may leave you responsible for debts assigned to you in the divorce decree.
• Child support and spousal support obligations cannot be discharged, regardless of timing.
• Chapter 7 and Chapter 13 filings have different impacts on income, property, and repayment.

Our experienced Virginia divorce attorney can help you understand how bankruptcy will affect your rights, assets, and long-term financial plans.

To Speak With An Experienced Virginia Divorce Attorney, Schedule a Consultation Today

Bankruptcy and divorce are stressful enough on their own. When they happen at the same time, the decisions you make early on can influence your financial security for years after.

At Schwartz Kalina, PLLC, we offer caring, comprehensive client support and the trusted legal guidance you need to navigate the situation. To speak with our experienced Virginia divorce attorney, call or contact us online today to schedule a confidential consultation.

Sources:

law.lis.virginia.gov/vacode/title20/chapter6/section20-107.3/

uscourts.gov/services-forms/bankruptcy