Posts Tagged ‘bankruptcy’

Our State Court of Appeals, Division III, held recently that a party to a dissolution of marriage cannot stay theĀ  dissolution by filing for bankruptcy. The dissolution may proceed, but property distribution must await resolution of the bankruptcy petition.

The federal bankruptcy code provides for an automatic stay in any proceeding against a bankruptcy debtor, subject to certain exceptions. One of those exceptions is dissolution of marriage. Pursuant to that exception, the trial court bifurcated the dissolution proceeding. Property issues were reservedĀ pending resolution of the bankruptcy. All other issues were addressed and the court granted the divorce.

The Court of Appeals affirmed.


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