Arizona is a community property state, and all debt incurred during a marriage is presumed to be joint and must be divided as such (equally). This is regardless of whose name is on the Visa, MasterCard, or American Express for example. As a result, bankruptcy and divorce in Arizona can be complicated.
First, if one party files bankruptcy during a divorce, it puts an immediate halt on the divorce proceedings with the exception of the Court being able to enter orders regarding child support and spousal maintenance (alimony). To summarize: a Court cannot enter a decree of dissolution of marriage during a bankruptcy if property and/or debts are at issue.
Second, if one files bankruptcy during a divorce, once the bankruptcy is granted, it does not mean that the other spouse is safe from creditors coming after them for the other party’s discharged debts. In bankruptcy, creditors are protected. Community debts are joint debts. Releasing one spouse from liability does not necessarily release the other. Again, filing bankruptcy and divorce in Arizona can be complicated.
BANKRUPTCY AND DIVORCE IN ARIZONA The attorneys at LASITER & JACKSON, PLLC., have over 40+ years of combined experience advising and representing clients in areas of family law and issues regarding bankruptcy and divorce in Arizona. Call us at (602) 234-5900 to schedule a consultation. We will discuss your options and the best way to protect yourself before and during what can often be a difficult and confusing process.