Divorce and Bankruptcy in Kansas City

Divorce and debt often go hand in hand. Understanding the right order -- file bankruptcy first or file for divorce first -- can save you thousands of dollars and months of complications.

Quick answer: In most cases, filing bankruptcy before divorce is more efficient. You can file jointly as a married couple, share the cost, eliminate joint debts together, and simplify the divorce property division. Neither Missouri nor Kansas is a community property state -- both use equitable distribution.

Filing Bankruptcy Before Divorce

Advantages

  • One filing fee instead of two: $338 for joint Chapter 7 or $313 for joint Chapter 13
  • Shared attorney fees: One case, one set of fees
  • Eliminates joint debts: Credit cards, medical bills, and personal loans are discharged for both spouses
  • Simplifies divorce: With debts eliminated, the divorce only needs to divide remaining assets
  • Double exemptions: Joint filers get double the exemption amounts in many categories

When It May Not Work

  • Combined income too high: Your joint household income may put you over the means test threshold for Chapter 7
  • Cannot cooperate: Joint filing requires both spouses to agree and participate
  • One spouse has separate debts: If only one spouse has significant debt, individual filing may be simpler
  • Domestic violence or safety concerns: Joint filing requires communication and cooperation that may not be possible

Filing Bankruptcy After Divorce

Advantages

  • Lower individual income: Your income alone may qualify for Chapter 7 even if joint income would not
  • No cooperation needed: You file independently
  • File only if you need to: After the divorce, you can assess whether bankruptcy is necessary for your specific debts

Disadvantages

  • Two separate filing fees: If both spouses need to file, that is $676 for two Chapter 7 cases
  • Joint debts survive divorce: Even if the divorce decree assigns a debt to your ex-spouse, creditors can still collect from you. You are still legally liable on joint accounts.
  • Property settlement debts: If your ex files Chapter 7, debts assigned to them in the divorce cannot be discharged under section 523(a)(15), but this protection only helps if you are the creditor spouse

Missouri and Kansas Are Not Community Property States

This is an important distinction. Neither Missouri nor Kansas uses community property rules. Both states follow equitable distribution, meaning the court divides marital property and debts fairly -- but not necessarily 50/50 -- based on factors including:

In the nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), marital debts are generally split 50/50 by law. In Missouri and Kansas, the court has more discretion.

Marital Debt Division and Bankruptcy

What Divorce Decrees Cannot Do

A divorce decree can assign responsibility for a joint debt to one spouse. However, this only binds the spouses -- it does not bind the creditor. If your divorce decree says your ex is responsible for a joint credit card and your ex does not pay, the creditor can still come after you for the full balance.

This is one of the strongest reasons to consider filing bankruptcy before divorce: eliminate the debt entirely rather than relying on a divorce decree to protect you.

Non-Dischargeable Debts in Divorce

Debt TypeChapter 7Chapter 13
Child support / alimony (DSO)Not dischargeableNot dischargeable
Property settlement debts (523(a)(15))Not dischargeableMay be dischargeable
Joint credit card debtDischargeableDischargeable
Joint medical debtDischargeableDischargeable

Section 523(a)(5) makes domestic support obligations (alimony, child support) completely non-dischargeable. Section 523(a)(15) makes property settlement obligations non-dischargeable in Chapter 7 but potentially dischargeable in Chapter 13.

Joint Filing vs. Individual Filing

Joint Filing

  • Both spouses file one case
  • One filing fee, one attorney fee
  • Must be legally married
  • Combined income used for means test
  • Double exemptions in most categories
  • Both spouses get discharge

Individual Filing

  • One spouse files alone
  • Separate filing fee and attorney fee
  • Non-filing spouse remains liable for joint debts
  • Only filing spouse's income used (with adjustments)
  • Single exemption amounts
  • Only filing spouse gets discharge

Frequently Asked Questions

Should I file bankruptcy before or after divorce?

In most cases, filing before divorce is more efficient. You share the filing fee, share attorney fees, and eliminate joint debts together. However, if your combined income disqualifies you from Chapter 7, filing individually after divorce may work better.

Can my spouse and I file jointly if we are getting divorced?

Yes, as long as you are still legally married. Joint filing is common for couples planning to divorce. Many Kansas City attorneys recommend this approach to save costs.

Is Missouri a community property state?

No. Missouri is an equitable distribution state, as is Kansas. The court divides marital property fairly but not necessarily equally. Neither state automatically splits debts 50/50.

Does bankruptcy eliminate debt assigned in a divorce decree?

It depends on the type. Joint credit card and medical debts are generally dischargeable. Domestic support obligations (alimony, child support) are never dischargeable. Property settlement debts are not dischargeable in Chapter 7 but may be in Chapter 13.

What happens to joint debts if only one spouse files?

The filing spouse's obligation is discharged, but the non-filing spouse remains fully liable. Creditors will pursue the non-filing spouse for the full amount.

Can I file bankruptcy to avoid paying alimony or child support?

No. Domestic support obligations are non-dischargeable under 11 U.S.C. section 523(a)(5). They cannot be eliminated in any chapter and are priority debts that must be paid in full in Chapter 13.

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