Married couples are the only entities allowed to file a joint bankruptcy petition. When a couple files a Chapter 13 bankruptcy another D word sometimes enters the equation which may cause one of the parties to seek a motion to deconsolidate their bankruptcy case. That other D word is “divorce”.
D is for Deconsolidate.
Photo by Poppy Thomas-Hill
I’m not a fan of the term “deconsolidate”. Not because of the negative connotation, but because it just sounds like really bad English. In fact, according to dictionary.com and my own spell-checker, it is not even a word.
I have heard attorneys in the South use the term “sever” which, although sounds painful, is better than “deconsolidate”. I’ve always used the term “bifurcate“, which means to divide into two sections. It sounds better because that is exactly what happens when a party files a motion to deconsolidate.
The Bankruptcy Court can deconsolidate, or divide a joint case, into two individual cases that would continue until the conclusion of each case.
Why would a party want to deconsolidate?
- Divorce-the parties want their separated lives further separated by splitting a bankruptcy case that continues to hold them together.
- If the reason the parties initially filed for Chapter 13 was because one spouse didn’t qualify for Chapter 7 (had too much income, filed a previous Chapter 7 within 8 years, non-dischargeable debt), then deconsolidation would allow the other spouse to convert to Chapter 7 and end his/her bankruptcy more quickly.
- One of the spouses wants the bankruptcy case dismissed.
Other Bankruptcy Lawyers talking about the Letter D are as follows:
- Debtor-New York Bankruptcy Attorney Jay S. Fleischman
- Discharge-Northern California Bankruptcy Attorney, Cathy Moran
- Debt Relief Agency-Metro Richmond Bankruptcy Attorney, Mitchell Goldstein
- Debtor-Taylor, MI Bankruptcy Laywer, Christopher McAvoy
- Declaring Bankruptcy-Wisconsin Bankruptcy Lawyer, Bret Nason
- Discharge-Los Angeles Bankruptcy Attorney, Mark Markus
- Discharge-Kona Bankruptcy Attorney, Stuart Ing
- Disclose-Marin County Bankruptcy Attorney, Catherine Eranthe
- Disclosures-Colorado Springs Bankruptcy Attorney, Bob Doig
- Do’s and Don’ts-San Francisco Bankruptcy Attorney, Jeena Cho
- Documents-Philadelphia Bankruptcy Laywer, Kim Coleman
- Domestic Support-Philadelphia Bankruptcy Attorney, Chris Carr
- DUI, DWI, OVI-Cleveland Area Bankruptcy Attorney, Bill Balena
- Do’s and Don’ts-Livonia, MI Bankruptcy Attorney, Peter Behrmann
- Domicile-Miami Bankruptcy Attorney, Dorota Trzeciecka
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