October 20, 2017
“Should I stay or should I go now?
Should I stay or should I go now?
If I go, there will be trouble
And if I stay it will be double
So come on and let me know”
- The Clash (1982)
When a bankruptcy proceeding and a divorce proceeding are pending simultaneously, it can feel like you have been transported back in time to 1982 and the Clash’s lyrics “Should I Stay or should I go?” are once again all too relevant.
For individual Debtors, the financial tipping point for deciding to file for bankruptcy is often related to a divorce. When a party files for bankruptcy during a divorce proceeding, the family law attorney can really feel the full meaning of, “If I go there will be trouble, but if I Stay it will be double.” This can be true whether you represent the Debtor or the non-bankruptcy filing party. What actions are permissible in family court when one party has filed a bankruptcy petition?