Divorce and Bankruptcy

At a Glance: In Minnesota, filing for bankruptcy during a divorce triggers an “automatic stay” that pauses property division but usually allows child support and custody cases to proceed. While bankruptcy can wipe out credit card debt, it cannot eliminate child support or spousal maintenance.

By: Jason Kohlmeyer

Updated: Jan 2026

If you are dealing with divorce and bankruptcy at the same time, the timing matters. The bankruptcy court and the family court can affect each other, and small decisions early on can create big problems later.

This page explains common issues people run into in Minnesota when divorce and bankruptcy overlap, what usually happens in each order, and what questions to ask before you file anything or hire both lawyers!

When divorce and bankruptcy collide, I’ve been doing this for 25 years, and what often happens is that the client won’t tell the divorce lawyer they are thinking about bankruptcy. This is always a mistake. Let’s take a look at why the timelines matter.

There are two common timelines:

1. Bankruptcy first, then divorce
2. Divorce first, then bankruptcy

The legal consequences can be different depending on which comes first, what kind of bankruptcy you file (Chapter 7 or Chapter 13), and whether the main issues are support, debt, or property division.

Bankruptcy first, then divorce

If you file for bankruptcy and then start a divorce, the biggest concept to understand is the automatic stay.

What is the automatic stay?

When a bankruptcy case is filed, federal law creates an automatic stay. In plain terms, it is a court-ordered pause that \ stops most creditors and many other collection actions while the bankruptcy is pending.

Why the automatic stay matters in divorce

A divorce often involves property, debts, and financial orders. Some divorce-related actions can overlap with what the bankruptcy court controls, especially when property is part of the bankruptcy estate.

The automatic stay is designed to give you some breathing room while you restructure your debt or develop a plan to address it.

Practical issues to watch for

You may run into one or more of these problems:

• Property division may be delayed while the bankruptcy is pending.
• You may need permission from the bankruptcy court before certain parts of the divorce can move forward.
• If your spouse filed for bankruptcy, you need to be careful about taking actions that look like debt collection.

Child Support or Spousal Maintenance claims when your spouse is in bankruptcy

Many people worry that bankruptcy will stop child support or spousal maintenance. Support is treated differently than credit card debt, but you still need to move carefully and with good advice.

If the other party is in bankruptcy and you want to address support arrears or enforcement, you should assume the stay might apply until you have clear guidance.

The biggest thing to keep in mind is that support and maintenance really can’t be impacted by bankruptcy

Divorce first, then bankruptcy in Minnesota

This is what I think is often the better method, and here’s why. You have completed the divorce, so you have that battle behind you, and you can focus on your next battle: bankruptcy. Remember, you only have so much mental energy to deal with legal battles.

If you file after the divorce, then you can look at the MTA (Martial Termination Agreement) and you’ll be able to see what you owe and what the bankrupcy court can do to help you debts.

Keep in mind that if you are ordered to pay, say, a joint credit card in the divorce, and you file bankruptcy, while the credit card company will not go after you, they will seek repayment from your spouse and this is an issue because the divorce court order says you have to pay it!

The next step is that your wife will seek contempt or enforcement from the divorce court, and she’ll prevail. So the takeaway is that if you are taking joint debt, you will still be stuck paying it!

Child support and spousal maintenance

Debts that are child support or spousal maintenance are generally not wiped out in bankruptcy. People sometimes assume bankruptcy eliminates everything, and that is one of the biggest and most expensive mistakes you can make in the divorce world.

Property settlement and divorce related debts

Divorces often create other obligations that are not support, for example:

• Agreements about who pays joint credit cards
• Who takes responsibility for medical bills
• Equalization payments as part of dividing assets
• Other financial promises in a decree

Some of those obligations may be treated differently in bankruptcy than support. The wording of your decree and the real purpose of the obligation can matter. If you are considering bankruptcy after divorce, it is worth reviewing your judgment and decree with someone who understands both family law and bankruptcy consequences.

Can bankruptcy change your support amount

Bankruptcy court does not rewrite child support or spousal maintenance; in fact, it really can’t do anything regarding child support or spousal maintenance.

If you need a change, that is usually handled in family court through a modification process. Bankruptcy may provide breathing room on other debts, which can indirectly help them afford support, but it is not a substitute for a family court motion.

If your ex files bankruptcy after divorce

If your former spouse files for bankruptcy, the automatic stay may limit how you can pursue certain money claims against them.

Even if you are frustrated and feel owed money, it is safer to assume the stay applies until you have clear legal guidance fromn you divorce lawyer, and you may need a bankruptcy lawyer as well.

What to think about before filing divorce or bankruptcy

If you are considering divorce, bankruptcy, or both, these are the questions that usually matter most:

• What debts exist (secured, unsecured, joint, or separate)
• Whether there are support issues (child support, spousal maintenance, arrears)
• Whether there are large assets to divide (home equity, retirement accounts, business interests)
• Whether one spouse is likely to file bankruptcy to shift pressure
• Which filing order creates fewer risks (bankruptcy first or divorce first)

In all the cases, the best strategy depends on the facts. There is no single right answer.

FAQ for Minnesota divorce and filing bankruptcy

Will bankruptcy stop my divorce?

No, the divorce will go just perhaps slower.

Will bankruptcy erase child support

No.

Will bankruptcy erase spousal maintenance

Support that is truly maintenance is not erased, but unclear obligations can create disputes. The details matter.

Should I file Chapter 7 or Chapter 13

Talk to your bankruptcy lawyer! but this depends on income, assets, and goals. The choice can also affect timing and how long the case stays open, which can affect divorce planning.

When should I talk to a bankruptcy lawyer

If divorce and bankruptcy are both on the table, earlier is better. Even one consultation can help you avoid filing in the wrong order or agreeing to decree language that creates avoidable problems later.

Talk to a Minnesota lawyer about your situation

If you are in Minnesota and deciding between divorce, bankruptcy, or both, I can help you understand the legal risks and the best next step based on your goals.

Information obtained in mankatofamilylaw.com may contain knowledgeable content about Minnesota Family Law that may be considered beneficial to some; however, in no way should this website or its contents be considered legal advice. Mr. Kohlmeyer is a Minnesota licensed Attorney and cannot provide legal services or guidance to those outside of Minnesota. If you wish to retain Mr. Kohlmeyer as your Attorney in your Family Law matter, contact 507-625-5000.