Bankruptcy and Divorce: Which Do I File First?

Bankruptcy and divorce often go hand-in-hand with one leading to the other. If you are facing the possibility of bankruptcy and divorce you should speak to the attorneys at Cohen and Cohen to determine which one you should file first, the timing of your filing, and the intersection of these two areas of law. These determinations will be made by the attorney using a detailed analysis of your income, assets, and debts.

Income, Marriage, and Bankruptcy Qualifications

Your income may determine what Chapter of bankruptcy you qualify to file and may be affected by whether you are married.

A Chapter 7 bankruptcy will allow you to discharge your debts in 3-5 months versus a Chapter 13 repayment plan bankruptcy causing you to make payments to your creditors for 3-5 years. The amount of income you are allowed to earn and still qualify for a Chapter 7 is based on the size of your household. The more people in your household, the more income you are allowed to earn and still qualify.

In addition, you may only file a joint bankruptcy if you are married. This means that if you get divorced and your children now live with your ex-spouse, then none of these people may not be part of your household. You may have previously qualified for a Chapter 7 bankruptcy, but due to your smaller household you may be required to file a Chapter 13 repayment plan.

Protecting Assets

Divorce divides assets between spouses and bankruptcy liquidates assets that are not protected by bankruptcy exemptions.

If you file for divorce prior to bankruptcy, then the divorce court may allocate assets to you. However, if a bankruptcy is filed after the division of assets, then the assets may not be protected from creditors. By filing bankruptcy prior to divorce you may be able to increase the protection of your assets and eliminate this problem by utilizing the bankruptcy exemptions allowed to a married couple.

If you are at risk for filing bankruptcy, but decide to hold off and get a divorce first, then you should be aware that filing a bankruptcy in the middle of your divorce will stop property from being divided due the automatic stay. The automatic stay stops actions against your property to protect it from your creditor’s collection efforts. Filing bankruptcy in the middle of a divorce may result in your divorce taking longer as the assets will need to be dealt with in bankruptcy first.

Debts in Bankruptcy and Divorce

When you file for bankruptcy your credit cards and dischargeable debts are wiped out to give you a fresh start. In the alternative, the divorce court can order you to pay the debts of your spouse. If you expect your debts to be paid by your ex-spouse, then you should know the limitations of such an arrangement.

The Court’s order for a party to pay debt does not change who owes the debt to the creditor. The obligation created by the divorce court requiring the payment of another person’s debt is an obligation to that person and not a new obligation to the creditor. If you have a credit card in your name and your spouse fails to make a payment on that credit card, then you will face collections, lawsuits, and negative credit reporting. If your spouse may already be bankrupt or unable to pay their own bills, then you may be thrust into bankruptcy yourself after divorce if payment of these debts exceed your income.

Taking the Next Step with Bankruptcy and Divorce

The next step is to meet with an attorney to review your options and protect your interests. In order to determine whether it is best to file bankruptcy or divorce first requires a thorough review of your financial situation.

The attorney will look at your income, assets, and debts to formulate a strategic plan. You can then make an educated decision about your choices. There are many complicated paths that may help or hurt you when you are reviewing bankruptcy and divorce. This article just barely scratches the surface. If you are getting divorced and bankruptcy is likely you should call us right away.

We Can Help You Protect Your Interests

If you need assistance in a bankruptcy or divorce matter, at Cohen and Cohen, we can help you understand your options, make important legal decisions, and will provide you with professional representation.

Speak to the Bankruptcy and Divorce Attorneys at Cohen and Cohen to see how our experience can help you.

To schedule an initial consultation to review your case with a Colorado Bankruptcy and Divorce Attorney at our convenient central Denver location call 303-933-4529.

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Hear From Our Clients

"Dear Mr. Cohen, I would like to thank you for completing my brother’s bankruptcy case. My brother and his family appreciate the time and effort it took to help relieve the stress of this financial burden. I would also like to commend your staff, Matthew and at the time, Barbara. My brother felt that they took the time to answer all of his questions and this made this process much easier for him. In this day and age, not too many people take the time to commend someone for doing and excellent job. We all concur, that is what your office delivered."

— MA.

“There are simply no words that can express how grateful we are for what you have done for my family. You gave us hope, you gave us peace, and you gave us back our lives and our home!! You were the light in the dark tunnel that our lives had turned into. You took us out and gave us a fresh start! You made us feel so comfortable that all of our insecurities, guilt, and shame disappeared. He helped us to realize our mistakes but not to feel depressed or guilty about them. Throughout the proceedings, objections and motions you stayed in contact with us and answered our questions patiently and were never too busy to speak with us regarding additional concerns that we had. The attention to detail, knowledge of the law and overall work ethic you have is just amazing and we will always be very thankful. I don’t even want to think where we would be right now if it wasn’t for you. I thank God everyday for allowing me to run into you at the courthouse. We want you to know that you will always have a special place in our hearts. Thank you for making the whole Bankruptcy process smooth and easy for us, considering how difficult our case was. Therefore, we highly recommend anyone in debt to consult with Robert Cohen because spending the money to have your case filed professionally, properly and with zero mistakes is worth every penny.”

— John & Tammra F.

“Rob – THANK YOU so much for all your help! I really really appreciate your hard work and thank you for making me feel comfortable at a difficult time. I will gladly recommend you to other people who may be in need of your services (no offense, but hopefully no one that I know will need a divorce attorney, but then again, I never thought I would either :o)). Again, MANY thanks, hope you had a wonderful holiday and Happy New Year!”

— Brenda Q.

”Thank you for your assistance again. Cohen & Cohen, staff & Robertson for helping us through a difficult time in our lives.”

— Client

“The law firm of Cohen and Cohen recently helped me navigate my way through the treacherous waters of divorce. I knew from talking with my Cousin who is a lawyer that it is very important to hire a competent lawyer to represent you in the divorce process. From the initial consultation right up until the very end I was provided with sound advice and I always felt comfortable and that things were moving in the right direction. I was able to fully understand the divorce process after one meeting and was kept well informed on what paperwork to file and when, and also what to expect. In addition, Rob was extremely well prepared throughout the divorce process and this was important when it came time to settle. He also provided me with advice about things I never even thought about and he provided a unique perspective which kept me out of harms way throughout the process. I was also pleased with the fact at how available he was and also that he knows how to utilize technology not only to save money, but also in order to engage in effective communication with the other party on matters related to the divorce. He was very quick at responding to any and all inquires that I had throughout the divorce process. Overall I would definitely recommend his law firm. Hiring him to represent me was worth every penny spent. If I ever need to hire a lawyer again for any of the areas that the law firm of Cohen and Cohen specializes in, I know who to contact”

— Client

Rob & Matt, “Nothing I can write can repay you for your kindness and help. The fact that you expected nothing in return makes a hard task [possible]. From the bottom of my heart – Thank you.”

— Erin

"My experience working with Rob was excellent to say the least. The business he provided was easy to understand and he walked me through the entire process which was very helpful. His attention to detail was very professional and he also is a very caring person whom I would recommend to anyone."

— Jen S.

"I will never be able to thank you enough for helping me feel comfortable thru the process of bankruptcy at a most difficult time. Dealing with the stresses of the economy, the added stress of dealing with illness and facing the stigma and feeling of failure that accompanies filing bankruptcy. You were extremely helpful, knowledgeable, comforting and now I can focus on recovery both financially and physically. I will always mention you and your firm, Cohen and Cohen to anyone I know that needs such assistance. Again, most grateful.”

— Cynthia

”I want to thank you for making a stressful situation bearable by showing a professional manner and honestly dealing with me. I appreciate you and your staff and would recommend you to anyone who should need legal assistance.“

— Hunter

"Robertson B. (Rob) Cohen was referred to me by one of his peers. I felt “what better a recommendation than that from another attorney”, so I called the law offices of Cohen and Cohen and spoke with Rob, and I am so happy that I did. He immediately understood my situation and was extremely helpful.In addition to his reassuring and supportive nature, Rob possesses the qualities one hopes for in their attorney; a strong knowledge of the law, good judgment, determination, and integrity. He is a good man, he is an excellent attorney. I felt I was in the best of hands with this fine gentleman, his associate (David Little, who also assisted me) and their responsive and caring office staff.”

— Carol

"It has been almost a year now that I came to you with my legal issues. At that time I wanted to try and take on the judicial system by myself and was pretty confident about my abilities. I had read books and documents of terms and conditions and thought this would be enough. I was very skeptical about any type of legal help but knowing what I know now, I am so glad I did not take the legal system on by myself. There were numerous terms and phrases I could not comprehend and you made it much easier to understand what I needed to know. Thanks for everything!"

— Joe T.

“Dear Rob: I wanted to express my gratitude for your assistance with my bankruptcy process. I found your services extremely professional and would recommend you highly I especially appreciated your sense of empathy during a very difficult financial struggle. Best Regards,”

— Client

"Thanks again for everything….we have said several times to each other, 'Damn good thing we have Rob on our side!'"

— Client

“Thanks so much for helping me in connection with a debt I did not owe. After over a year of trying to deal with collections agencies on my own (the alleged debt had been “assigned” several times), I realized that I did not have the time or the energy to fight this by myself. It took the experience and wisdom of someone who understands the system to effectively and expeditiously address this matter. After retaining your firm, I have not been contacted again by ANY agencies on this matter. Your fees were very reasonable, you handled the matter promptly and you delivered a great end result. Frankly, I wish I had retained your firm much earlier in the process. If I had done so, I would have saved a lot of time and energy, and the stress of having to fight the agencies by myself. Thank you for helping me successfully fight back on a debt that I truly did not owe.“

— E. C.

“I’ve worked with Cohen and Cohen for many years in many different capacities from handling my divorce to dealing with a difficult landlady, with results always ending up in my favor, in the best interest of my child, or in the interest of justice. Rob and his team have and continue to be dedicated to my cases, careful and protective of my sensitive information, and have solidly fought for my interests in all facets of the legal system. I have and will continue to recommend Cohen and Cohen to my friends and family who are in need of any legal advice – no matter the size, need papers filed, or unfortunately a divorce or other difficult matter at hand. Why? Because I know they’ll find a law firm rooted in integrity and driven my honorable principals.“

— Kyle

“…You really enlightened me on bankruptcy and the understanding of how it works. I felt very comfortable and know in the future if and when I need a lawyer, your it…[If] I do know anyone looking for a lawyer [they] will be sent to you. Thanks again, Your a good, patient, non intimidating professional. Hope your enjoying your teaching I could imagine your very good at it.”

— Tami

"Thank you again so very much! We finally got the load mod we needed to stay in our home which was official on November 1, 2014, none of which would not have been possible without your willingness to handle our case. We are incredibly grateful for your expertise and kindness. We highly recommend your services to everyone!”

— Larry & Karen

"It has been awhile but i just wanted to say thank you so much for helping me with my case in the family courts. I think of you each time I (unfortunately) still deal with them on my own. My life is still not recovered but I am chipping away. You did a heck of a job and stuck in there when it looked completely hopeless. When I met you I was sleeping in my car or couch surfing due to my horrible divorce decree. Now I have my own apartment and I get to spend my 50% with my kids! My son is headed off to college this year and my daughter is going into high school. I could have missed those moments if you hadn’t helped when others wouldn’t. I have had to deal with quite a few attorneys over the last few years and you are head and shoulders above the rest."

— T. N.

“I called you in desperation because I needed help with my divorce case that had forced me into bankruptcy. Your obvious expertise, together with good common sense and excellent knowledge of the law, helped me prepare for the battle to come in my case and ultimately lead to an overwhelming victory. In a divorce that lasted nearly 3 years for a marriage that lasted less with no children, one can imagine the complexity of the case. It was immediately following Rob’s deposition of the plaintiff, that the plaintiff’s counsel indicated a willingness to consider a settlement for something other than their original amounts. Shortly after that, the allegations from her and her attorney were completely dropped and they discontinued any further actions. Without Rob’s knowledge and ability to forcefully state his opinions and conclusions in the deposition it is doubtful that this matter would have settled before possibly hundreds of more hours and many more court appearances would have been used. I would highly recommend Rob as an expert to any lawyer, plaintiff or defense needing someone who cares, takes the time to listen to understand the case, and wants to be treated with integrity throughout the process no matter what the situation.”

— Mark S.

"I would like to Thank you for all of your assistance with my financial affairs. With all of your knowledge and guidance regarding my Bankruptcy, you made this transition a lot less stressful. You were great with returning my calls even for the most minute question. I was very unsure of this whole legal process but you really did ease my mind with the way you had everything laid out in a structured plan, including payments, paperwork and filing of my case while I was in your office, on the same day. Not many people can say this experience was a positive one for them but with your assistance I can say my experience with your law firm was extremely positive."

— Chris O.

"Thanks again for coming through for us! You’ll be the first company we consider if we have any legal issues in the future, and we’ll be recommending your company as well, to others. You helped us to feel very at ease with what we saw as a dire situation, and gave me some excellent advice as to how to regain my excellent credit standing which I used to have [7 years ago]. All the best to you and yours,"

— Beth

”I’d like to personally thank you for making an extremely difficult situation as pleasant as possible. I found myself in a very awkward financial position with no recourse but to file for bankruptcy. Your experience, directness, attention to detail and your honesty helped guide me through this process. I am now starting over in life, with a fresh start and look forward to tomorrow with renewed expectations. Thank you once again for your service and help. I will happily refer you to anybody who might need your service.“

— Clarissa

"Bankruptcy is certainly not what one would describe as a “pleasant” event, but having a conscientious, experienced attorney can lessen the more unpleasant, and unexpected aspects of getting through it. I knew that Rob was asking questions and collecting the necessary materials and answering all the questions I had well in advance of the court date to appear before the Trustee. Once that date arrived, I was sitting in a courtroom where several other attorneys and clients were meeting prior to their Trustee meeting. I was amazed at the conversations I heard going on. These attorneys were asking questions that Rob and I had discussed much earlier in preparatory meetings. I’m not sure I would’ve had all my documentation and information at hand to answer these detailed questions thirty minutes before the hearing. When we were admitted into the courtroom where the Trustee heard the cases, I noticed he asked for further documentation to answer questions that weren’t satisfactorily addressed in the materials presented on several different cases. The respective attorneys would answer that the material would be provided in the next 2 weeks to 2 months. I was naturally worried that when my case was called, I would be confronted with the same request for more information and delay the bankruptcy. But, when we were finally called, the Trustee looked through the paperwork and asked us a couple of questions. He studied the paperwork a little more and that was it. Everyone’s case is unique and I imagine there are always going to be those requests for more information. I can just say, I was very relieved and pleased to have had Rob as my attorney that day knowing that we had worked together to anticipate and provide as much information as possible to facilitate a smooth hearing which resulted in no delays."

— Rhonda

”I recently completed a bankruptcy with a now defunct law firm. I had a question that needed immediate attention, and was referred to Mr. Rob Cohen by another attorney. I was reluctant to call because I was afraid he would not be too keen on helping me out, because he didn’t handle my bankruptcy. The need for an answer got the best of me, so I called. I was very pleasantly surprised with the response I received. It started with a very kind receptionist who politely listened to my problem and took my information. I was sure she would pass everything along to one of the attorneys and I would hear back from them sometime in the near future. Much to my surprise, she transferred me to Mr. Cohen immediately, right then and there. Mr. Cohen took may call, listened to my question and dilemma, and very professionally went through the options I had available to me. He was very kind, sympathetic, and he was very genuine and compassionate to my situation. He really understood my problem and explained in detail my choices in a a way that I understood completely. He made me feel as if I was his only client. The best part of this story is that he did all of these things out of the kindness of his heart, he charged me nothing. Mr. Rob Cohen is a class act, there is no pretense with this man. He really cares and treated me much better than I could have imagined, considering the sensitivity of my situation and how hard it was for me to talk about it. Thank you Mr. Cohen, you are one of the good guys and I hope sometime in the future I can return the favor.”

— Steve M.

“I just wanted to thank you so much for all of your help with the bankruptcy and making it so I could live again! Thanks again”

— Tina

"I have never ever experienced what i had to go through this year I almost lost my home and the stress was unbearable Mr. Cohen went out of his way to support me in everything I did not only is the law firm the best ever but i would recommend them to everyone i know. You cannot find attorney’s like this that are willing to give you some kind of piece of mind and do whatever it takes to help you in situations you are not used to handling. Thank you from the bottom of my heart Mr. Cohen I will never forget what you have done for me and my family.“

— Edwina

“Rob brings an extensive and nuanced understanding of the practical and artful aspects of getting out of bankruptcy. We felt far more informed about our options and about pros and cons of each alternative after consulting with him; as well as confident of his team’s ability to execute with the best interests of the client in mind. If you are considering bankruptcy he should be your first and last call.”

— D. V.

"Working with Cohen and Cohen epitomizes the phrase, “You get what you pay for.” From the initial consultation I immediately trusted Rob. He was thorough and detail oriented, the review process was conversational rather than Rob running through a list of questions from a sheet of paper. It was obvious that Rob was considering my case from a number of angles while we discussed my situation. When it was time to pay my retainer Rob informed me that he was more expensive than his associates and was comfortable with me engaging them if I wanted to save some money. It was a no-brainer for me, I wanted to work with Rob.All aspects of the process at every level were handled quickly, professionally and with courtesy. The day of my hearing is where I truly realized that I’d made the correct choice with Cohen and Cohen. We entered the hearing room well before it was our assigned time and I watched another case being heard. It was obvious that the attorney wasn’t prepared nor did they have all of the details in order. This perturbed the trustee and it was obvious he had no intention of leniency as a result of his time being wasted. The attorney and her client left with more work to do and no progress in their case. Because we were ready to go and the previous case took less time than anticipated my case was heard almost an hour prior to the scheduled time. Rob had coached me as to what information to have available for all the questions asked by the trustee – we were prepared and the hearing went smoothly because of Rob’s attention to detail."

— Client

"Thanks again for all your help! I can’t imagine a way you could have been more effective. You kept our costs low and helped us reach a solution without having to go to trial. I’m almost sad I didn’t get to see you work in the courtroom, almost. Lol! Thank you"

— L. B.

“Most people do not seek out the services of an attorney unless they are beyond the means to help themselves. When I sought help for mounting financial stress due to a divorce case, Rob clearly and articulately helped me understand my options. He did not push for one option over another—he provided the information and then let me decide. I did not feel he was selling or pushing a particular action. I felt he was a competent and respectful professional who treated me as someone who is capable of making informed decisions and could participate with him in decision-making. I felt I could trust his advice. That made all the difference in this highly stressful and chaotic time.”

— Ashley T.

”I visited Rob Cohen to seek his advice regarding my legal issues. Rob stated clearly all the possibilities and options. He was extremely knowledgeable about the current laws and their impact on my situation. He recommended the most reputable people in different areas to aid in my decision making. I would recommend him highly."

— Client

”Being in the financial position to have to file a Chapter 7 Bankruptcy was something that my wife and I never thought would happen to us. But a failed business investment and huge financial liabilities stemming from the personal guarantees we had made left us with no other reasonable choice. Making the choice to work with Rob Cohen to prepare, file, and follow the bankruptcy to its close has proven to be the best decision we could have made. Rob took away any sense of guilt, embarrassment, or shame during the filing process and focused on getting us the cleanest, fairest settlement possible. I am happy to say that we did receive a settlement deal from the Trustee that was much more in our favor than I ever would have hoped for when we realized we would have to file for bankruptcy protection. Rob’s calm demeanor and comprehensive sense of the “big picture” kept both my wife and I assured and confident. His extensive knowledge of the bankruptcy code also put us at ease anytime a question or concern would arise. Having Cohen & Cohen on our side while experiencing the worst financial crisis of our lives has been instrumental in our rapid recover and ability to regain control of our lives.”

— Client

Quality. Service. Integrity.

More than just buzzwords.

Income, Marriage, and Bankruptcy Qualifications

Protecting Assets

Debts in Bankruptcy and Divorce

Taking the Next Step with Bankruptcy and Divorce

We Can Help You Protect Your Interests

Bankruptcy and Divorce: Which Do I File First?

Income, Marriage, and Bankruptcy Qualifications

Protecting Assets

Debts in Bankruptcy and Divorce

Taking the Next Step with Bankruptcy and Divorce

We Can Help You Protect Your Interests

Contact Us