About the Course
Introduction
This CLE course will review the unique powers of bankruptcy law to alter or affect the financial plans and goals of divorced or divorcing spouses when bankruptcy is commenced before, during, or after a divorce.
Description
Counsel must address a dizzying array of factors and combinations of factors when divorce and bankruptcy intersect. The factors include when to file and in what order; what chapter to file; whether bankruptcy occurs before or after the division of the property; whether the case is joint or solo; whether claims of third-party creditors are involved; and whether either proceeding requires the sale of a business and business interests held by only one spouse.
Bankruptcy courts can override the divorcing parties' intentions and reasonable expectations for the benefit of third-party creditors. The bankruptcy court can recharacterize support as property division and loans as equity—or vice versa—with significant consequences.
Property that can satisfy creditors in bankruptcy is difficult to determine, varies in community property and equitable division states, and turns on which chapter of bankruptcy is filed, exemptions allowed, and even residency. The law is fact-specific for many financial assets, such as education savings accounts, pre-paid tuition, net operating losses, and other tax attributes.
Listen as this panel of experienced bankruptcy and family law attorneys discusses the best strategies for achieving the parties' financial goals when divorce and bankruptcy are factors.
Presented By
Mr. Hirsch has practiced Bankruptcy law since 1982 and has a broad range of experience in all aspects of Bankruptcy practice and debtor/creditor practice, including loan workouts.
Mr. Steiner has helped business and consumer clients throughout Maryland discharge millions of dollars of debt. His practice focuses on representing those in financial distress - as both debtors and debtors-in-possession - in pre-bankruptcy and bankruptcy planning, transactions with bankruptcy estates, bankruptcy litigation and bankruptcy fraud, automatic stay and discharge injunction violations. Mr. Steiner also advises clients on commercial loan and lease workouts and Article 9 litigation, as well as financing, insurance and contract disputes. He is a sought-after speaker and writer, he regularly educates audiences on all facets of bankruptcy - presenting to such audiences as the Maryland Society of Accounting & Tax Professionals, Exit Planning Exchange, the Maryland Association for Justice, the Maryland LGBTQ Chamber of Commerce and the Collaborative Professionals of Baltimore.
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
Date + Time
- event
Wednesday, April 1, 2026
- schedule
1:00 p.m. ET/10:00 a.m. PT
I. Introduction
II. Bankruptcy provisions that matter the most
A. Definitions relevant to divorce counsel
B. Automatic stay: What is it, and when does it apply?
C. Recharacterization
D. Exemptions
E. Avoidance powers
F. Discharge
III. Differences between Chapter 7 and Chapter 13
IV. Chapter 11 and Subchapter V issues
V. Tax issues
VI. Practitioner takeaways
The panel will review these and other key issues:
- Sequencing divorce and bankruptcy
- Domestic support obligations
- Automatic stay
- Tax considerations when a spouse or former spouse files for bankruptcy
- Provisions to include in the property settlement agreement relating to bankruptcy
Related Courses
Non-Grantor Trusts in Elder Law Planning: Specific Trust Strategies and Key Tax Considerations
Wednesday, April 29, 2026
1:00 p.m. ET./10:00 a.m. PT
Recommended Resources
