RLT has developed a particular niche when it comes to the intersection of divorce law and bankruptcy law. With the increase in individual bankruptcies, the high incidence of divorce, and the frequency with which separated individuals have extreme financial distress, bankruptcy courts have struggled to reconcile the tension between the “fresh start” policy inherent in a bankruptcy filing with a divorcing debtor’s obligations to a former spouse and dependent children. The consequences of a bankruptcy filing before or during the pendency of a divorce action require the guidance of a bankruptcy professional fully familiar with the status of unresolved equitable distribution claims after the filing of a bankruptcy case, and the separate lines of authority addressing the propriety of stay relief to enable the matrimonial court to decide property allocation issues, or whether the bankruptcy court is the more appropriate tribunal to make equitable distribution determinations. When a divorce proceeding involves the prospect of a bankruptcy filing, RLT can provide much needed, highly specialized counsel, which in consultation with your primary divorce attorney may provide material strategic benefits.

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