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Bankruptcy During Divorce: What Happens to Support, Property and Debt? | Lawyers Without Billboards S2-Ep34
Description
What happens when bankruptcy crashes into a divorce case?
Bankruptcy attorney Ian Falcone joins Steve, Patty and Alexa to explain how bankruptcy can affect divorce proceedings, support obligations, property settlements, attorney’s fees, joint debt and real estate.
Ian breaks down the differences between Chapters 7, 11, 12 and 13, then explains one of the most important concepts in bankruptcy law: the automatic stay. The group discusses what may pause when bankruptcy is filed during a divorce, what can continue and why the answer often depends heavily on the facts.
They also explore whether child support, alimony, extracurricular expenses, car payments, attorney’s fees and other divorce-related obligations can be discharged. Ian explains why simply labeling something “support” may not make it support in bankruptcy court and why carefully drafted settlement agreements and indemnification provisions matter.
Finally, Ian shares a critical warning for divorce attorneys and spouses dealing with real estate: when a house is titled in only one spouse’s name, filing a lis pendens early may help protect the other spouse’s interest if bankruptcy is later filed.
⏱️ Chapters
00:00 Introduction
01:10 Meet bankruptcy attorney Ian Falcone
04:40 From “threshold law” to bankruptcy practice
07:20 When divorce and bankruptcy intersect
10:17 Understanding Chapters 7, 11, 12 and 13
12:46 Why people with assets sometimes file bankruptcy
15:05 What happens when bankruptcy is filed during divorce
15:36 The automatic stay explained
16:40 What divorce issues may continue despite bankruptcy
18:52 Why violating the automatic stay can be risky
21:58 Criminal actions, civil actions and contempt
24:40 Why bankruptcy answers are often fact-specific
27:18 Can divorce-related debt be discharged?
28:10 What counts as a domestic support obligation?
29:44 Cars, insurance, college expenses and attorney’s fees
31:00 Drafting agreements to protect support obligations
33:17 Why labels do not control in bankruptcy court
35:19 Why indemnification language matters
37:17 Chapter 7 versus Chapter 13 divorce debt
39:17 Protecting a home with a lis pendens
41:34 Rising bankruptcy filings and struggling businesses
43:14 Final thoughts
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Connect with bankruptcy attorney Ian Falcone: https://www.falconefirm.com/
🎙️ Hosts: Steve & Patty Shewmaker, Jimmy & Alexa Lewis
🎧 Watch here: https://youtu.be/BNnEoXfG-58 or listen on Spotify, Apple Podcasts, Google Podcasts, and more.
📩 Contact: pshewmaker@shewmakerandlewis.com
| (770) 939-1939
🌐 Website: https://www.shewmakerandlewis.com
🎧 Podcast Library: https://shewmakerandlewis.com/lawyers-without-billboards
🎼 Music by Ben Hernandez – Dragonsong Productions
🎥 Produced by: Bleeding Edge, Inc.
🎬 Audio & Video Production: Rob Burgner
📍 Recorded at: Shewmaker & Lewis, Atlanta, GA