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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Hello, If someone is married and owns a business (the business

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If someone is married and owns a business (the business is only owned by them no ownership at all by spouse) and decide to close the business with outstanding debt, should they get a divorce first before filing for bankruptcy?

*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*


Thank you for your question. My name is XXXXX XXXXX I will do whatever I can to answer your questions!

Typically a divorce would not be helpful.

Here is why:

1. If the spouse is liable for the debt prior to the divorce, the spouse will remain liable for the debt regardless of the divorce.

2. If the concern is to protect assets by transferring those assets to the nondebtor spouse, any transfers made to the nondebtor spouse within 2 years of the bankruptcy filing date would be avoided or set aside under Bankruptcy Code §548 regardless of the divorce

I would be glad to respond to any follow-up questions that you may have.
Ellen and 2 other Bankruptcy Law Specialists are ready to help you

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