Going bust in divorce

Year Published: 2012

People going through a divorce may think that the easy way out is to claim bankruptcy. Bankrupts will usually be discharged from bankruptcy after one year and bankrupts are seemingly not the social outcasts they used to be. It might be thought that a way of getting out of paying what your other half is due under a Court Order, is to make yourself bankrupt.

The position in practice though is that even if a husband or wife makes themself bankrupt, the obligations to their former spouse or partner will remain. Therefore, once the bankruptcy has ended, the whole thing may have been an absolute waste of time.

A bankrupt can apply to Court to be released from a debt. If an order has been made requiring one party to pay say a lump sum to the other party, the payer may apply to Court and ask that he or she be released from the debt. Although an application can be made, the likelihood of success is slim. Bankruptcy may therefore not be an easy way out.

Should you require any information regarding the above or any other family matters please contact our Family Law team on 0161 475 7676.

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