bankruptcy and divorce in texas

Navigating the complexities of both bankruptcy and divorce can be challenging, especially when they intersect. In Texas, while it’s technically possible to file for both simultaneously, there are several considerations to keep in mind. This blog post aims to shed light on the intricate relationship between bankruptcy and divorce in Texas, guiding you through the potential complications and strategic decisions.

1. The Challenges of Filing for Both Simultaneously

While you can technically file for bankruptcy and divorce at the same time in Texas, I do not advise doing so. Combining these two complex legal processes can further complicate both the bankruptcy and the divorce. Moreover, it can significantly increase the costs in attorney fees, making the entire ordeal more financially and emotionally taxing.

2. Types of Bankruptcy and Their Impact on Divorce

The type of bankruptcy you’re considering can significantly affect your divorce proceedings:

  • Chapter 7 Bankruptcy: Often referred to as “liquidation” bankruptcy, Chapter 7 is typically quicker to process. If filed before the divorce, it might conclude before the divorce is finalized, simplifying the division of assets and debts.
  • Chapter 13 Bankruptcy: This “reorganization” bankruptcy can last 3 to 5 years, potentially complicating and prolonging the divorce process.

3. Division of Assets and Debts

Bankruptcy can influence how assets and debts are divided during a divorce:

  • Filing Bankruptcy Before Divorce: The bankruptcy court will first address the couple’s joint debts and assets. This can streamline the divorce process as many financial matters are resolved beforehand.
  • Filing Divorce Before Bankruptcy: The family court will determine the division of assets and debts. This could complicate a subsequent bankruptcy filing.

4. The Role of the Automatic Stay

Upon filing for bankruptcy, an automatic stay comes into effect, halting most collection actions against the debtor. This stay can delay the division of marital property in a divorce, making it essential to strategize the timing of both filings.

5. Strategic Timing

Some couples opt to file for bankruptcy before divorce to jointly address their marital debts, simplifying the financial aspects of the divorce. Conversely, if one spouse has a significantly lower income, they might qualify for Chapter 7 bankruptcy individually after the divorce.

6. Legal Representation

Given the complexities involved, it’s paramount to consult with professionals well-versed in both bankruptcy and family law. They can provide insights tailored to your unique situation.


The intertwining of bankruptcy and divorce in Texas is intricate, requiring careful planning and consideration. By understanding the potential challenges and seeking expert advice, you can make informed decisions that best serve your financial and personal well-being.

To discuss retaining our firm for your divorce or child custody case, please schedule a consultation with us today.