How does a divorce affect an uncompleted Chapter 13?

Getting a divorce during Chapter 13 bankruptcy can make it harder to complete your repayment plan, however it doesn’t mean that your case must be dismissed. If you want to continue with your bankruptcy and obtain a discharge, you have options.

Even if you get divorced during your Chapter 13, you can still continue making your regular plan payments, however you must be able to work out how to divide the payments with your ex. In addition, the financial burden of divorce and maintaining 2 separate households may not allow for you to afford regular plan payments.

Additionally, if you did not originally qualify for a Chapter 7 due to having too much disposable income, with the increased expenses resulting from  divorce and maintaing separate households, you may now be able to convert your case to a Chapter 7, if in fact that will be in your best interests.

If you don’t want to (or can't) convert your bankruptcy to a Chapter 7, you may be able to have your Chapter 13 payments reduced since your budget now includes expenses for both households, so there will not be as much disposable income to pay into the plan.

Finally, if you don’t want to be in the same bankruptcy as your ex-spouse, you can petition the court to "bifurcate" your case into 2 separate bankruptcies. Once your case is so split, each person can decide whether it’s in their best interest to convert to Chapter 7 or remain in a Chapter 13.

At this point, you should consult directly with a bankruptcy or divorce attorney in your area.