Tactical bankruptcy

Spouses are now using bankruptcy as a tactical tool in divorce. When a spouse files for bankruptcy, everything in the divorce comes to a halt. This freezing of the case is required by federal law, and various State laws cannot undo this dynamic (more about what’s called preemption, later). If you were considering filing for bankruptcy, or have little to no assets, you too can use this as a tool in your divorce. Why? Some spouses just want to delay the case, because they don’t want to be divorced. Others can stop a spouse from accessing assets to pay their own attorney’s fees. Filing for bankruptcy would stop any sort of allocation of assets that you do not find desirable. The filing of bankruptcy may just be the “escape hatch” many spouses need in the process to buy time, or stop something from happening.

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