Divorce and Bankruptcy

One of the biggest and most financially difficult things that may arise out of a divorce, is the necessity for bankruptcy after divorce. With the changes in the consumer bankruptcy laws, it is now much more difficult for someone to file for a Chapter 7 bankruptcy, despite the fact that they are saddled with debt and not enough income to cover that debt after their divorce is finalized. Another issue for some is that even though they may be able to file for bankruptcy, their alimony and child support payments are not dischargeability in bankruptcy, so they are still left with not enough money in order to support themselves, their ex-spouse and their children. Forbes has recently published an article which separates fact from fiction when divorce and bankruptcy intertwine. To read the article in its entirety, see the following: http://www.forbes.com/taxesandestates/2007/05/03/divorce-bankruptcy-debt-pf-estates-in_mb_0503money_inl.html