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Bankruptcy and Divorce

When financial problems intersect with the end of a marriage, two legal actions may be necessary. If one spouse files for bankruptcy while the divorce is pending, the divorce is stayed and the property division rules of Oregon or Washington family law have to be reconciled with the rules of a bankruptcy court.

Whether you have filed for bankruptcy or the spouse that you are divorcing files for bankruptcy, that proceeding can have serious consequences for you both during and after the divorce. Negotiating through the sometimes conflicting rules of family law and bankruptcy is a complex process. However, the Oregon and Washington family law attorneys at Jensen & Leiberan, have the experience to work with bankruptcy lawyers to make sure that the gains that you make in one court are not diluted or erased by the ruling of the other court.

We will help you navigate through the challenges and overcome the obstacles of combining a bankruptcy with a divorce.

If your divorce will result in a bankruptcy filing or if you are concerned that your spouse will file for bankruptcy while your divorce is pending, take action quickly to protect your rights and your assets. Contact us at (503) 641-7990.

Family Lawyers Helping You to Pay Only Your Share of the Marital Debt

A bankruptcy filing will stop a divorce initially. However, we can usually obtain leave from the bankruptcy court to continue the marital dissolution. The bankruptcy court may refuse to allow the divorce to go forward while the bankruptcy is pending if there are serious issues related to the division of property and it appears that the party filing for bankruptcy will not receive enough from the divorce judgment to pay all debtors.

A division property in a divorce or dissolution of a registered "domestic partnership" is governed by principles of justice and equity between the parties and a general presumption that the assets and debts should be split equally. That is not the case in bankruptcy court where the rights of creditors can trump the rights of the non-bankrupting spouse.

Bringing a bankruptcy proceeding and a divorce case together is challenging, but we welcome the chance to overcome the obstacles on your behalf to ensure that you obtain a fair result.

Partnering With Bankruptcy Attorneys on Your Behalf

At Jensen & Leiberan, Attorneys at Law, we team with seasoned bankruptcy attorneys to get you through difficult processes. The end of a marriage is traumatic enough without adding the need for bankruptcy protection. You can count on us to be at your side, providing you compassionate advocacy and aggressive representation while helping you navigate through these complex proceedings.

Contact Us

For more information or to schedule an appointment with an experienced Oregon and/or Washington family law attorney regarding divorce and bankruptcy, please contact us.

Jensen & Leiberan Attorneys at Law

One Lincoln Center
10300 SW Greenburg Road, Suite 300
Portland, OR 97223
Phone: (503) 641-7990
Fax: 503-646-2053
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