Understanding Bankruptcy During Divorce in Ohio
- Sep 5
- 8 min read
By Attorney Andrew Russ,Columbus Ohio Divorce attorney
How bankruptcy and divorce interact in Ohio—Chapter 7 vs. 13, the automatic stay, support, and property division. Guidance from a Columbus Ohio divorce attorney.
Introduction: When Debt, Divorce, and Timing Collide
Divorce already forces tough decisions about housing, debt, parenting time, and support. Add serious debt or a pending bankruptcy, and the stakes jump: who is responsible for joint credit cards, what happens to mortgage arrears, does the automatic stay freeze your divorce, and which obligations survive a discharge? This guide explains the moving pieces—Chapter 7 vs. Chapter 13, what the stay stops (and doesn’t), how Ohio courts divide property and debt, and why your Columbus Ohio divorce attorney coordinates with any bankruptcy counsel from day one.
Important: This article is general information for Ohio readers and not legal advice. Bankruptcy and domestic relations are fact-sensitive; speak with counsel before making decisions.
Bankruptcy 101 for Ohio Divorces
Chapter 7 vs. Chapter 13—big-picture differences
Chapter 7 (liquidation): A trustee gathers non-exempt assets to pay creditors; most remaining eligible debts are discharged. It’s relatively fast, but you must pass the means test (or otherwise avoid a presumption of abuse). (United States Courts)
Chapter 13 (wage earner plan): You keep property and repay all or part of your debts through a 3–5 year plan, catching up on mortgage/auto arrears and prioritizing certain claims. (United States Courts)
Most individual filers must complete means-test forms and pre-filing credit counseling with an approved agency. These are federal requirements and apply in Ohio as well. (Justice.gov, United States Courts)
The Automatic Stay—and Key Family-Law Exceptions
Filing a bankruptcy case triggers an automatic stay that ordinarily halts collection, lawsuits, and garnishments. But domestic-relations matters have targeted exceptions:
Proceedings to establish or modify a domestic support obligation (DSO), cases concerning custody/visitation, and actions dissolving the marriage (aside from division of property of the estate) may go forward despite the stay.
The collection of support from non-estate property and wage withholding for ongoing support are also not stayed.
These carve-outs appear in 11 U.S.C. § 362(b)(2). Bottom line: bankruptcy does not stop support establishment or enforcement, and it generally doesn’t stop custody or visitation proceedings; it can pause equitable distribution involving property of the estate. (Legal Information Institute)
What Can and Can’t Be Wiped Out: Support vs. Property Division
Domestic Support Obligations (DSOs) are nondischargeable
“Domestic support obligation” includes debts owed to a spouse, former spouse, or child—alimony/ spousal support and child support—defined at 11 U.S.C. § 101(14A) and excepted from discharge under § 523(a)(5). These survive both Chapter 7 and Chapter 13, and Chapter 13 plans must pay priority DSOs in full (with limited variations). (Legal Information Institute, United States Courts)
Property-settlement debts: different outcomes in Ch. 7 vs. Ch. 13
Obligations “to a spouse, former spouse, or child of the debtor” not in the nature of support—think hold-harmless/indemnity provisions or equitable-distribution awards—are covered by § 523(a)(15). They are nondischargeable in Chapter 7. In Chapter 13, the discharge statute—§ 1328(a)(2)—lists which § 523 categories remain nondischargeable after plan completion. Notably, § 523(a)(15) is not listed, so many property-division obligations may be dischargeable upon successful completion of a Chapter 13 plan (support still is not). Courts analyze the facts and plan terms. (Legal Information Institute)
Takeaway Example: If a divorce decree assigns a party joint credit card balances “as a property division,” Chapter 7 won’t wipe those; Chapter 13 may, after plan completion. (Support never goes away.)
Ohio Divorce Law: Equitable Division and Marital Debt
Ohio is an equitable-distribution state. Courts classify assets/debts as marital or separate and then divide equitably—which doesn’t always mean equal—under R.C. 3105.171. Orders can include distributive awards and exclusive use of property for a reasonable period. (Ohio Laws)
Why it matters during bankruptcy:
If an item (or debt) is marital and becomes property of the bankruptcy estate, property division is constrained by the automatic stay.
If the obligation is support-like, it is enforceable and prioritized; if it’s property-like, there may be a Chapter 13 strategy if discharge is a goal.
Timing Strategy: File Bankruptcy Before, During, or After the Divorce?
There is no one-size-fits-all answer. Work with your Columbus Ohio divorce attorney (and, if needed, a bankruptcy lawyer) to map these scenarios:
1) Filing Before Divorce
Pros
Wipes out unsecured marital debt front-end (often via joint Chapter 7), simplifying the divorce.
May free cashflow for support/parenting needs.
Cons
If you jointly file and qualify for Chapter 7, you still must navigate means testing and exemptions; some property may be at risk. (United States Courts)
Best for: Couples aligned on debt-cleanup first, with modest non-exempt equity and income within means-test thresholds.
2) Filing During Divorce
Pros
Chapter 13 can cure mortgage arrears over time while the domestic case sets parenting/support.
The stay prevents certain creditor actions while you stabilize budgets.
Cons
The stay does not pause support establishment/collection or custody/visitation; coordination is essential to avoid conflicting orders. (Legal Information Institute)
Key Consideration: Temporary orders and discovery deadlines in domestic court vs. plan feasibility in bankruptcy court.
3) Filing After Divorce
Pros
The decree clarifies which debts are support vs. property; you can plan Chapter 13 around any § 523(a)(15) targets.
If support is set higher than expected, a Chapter 13 may help you reorganize other debts.
Cons
If the decree assigns you joint cards “hold harmless,” those property-division obligations survive Chapter 7—you may need Chapter 13 to address them. (Legal Information Institute)
Exemptions: What You Can Keep in an Ohio Bankruptcy
Ohio uses state exemptions (R.C. 2329.66) rather than federal ones. These protect some home equity, a vehicle, household goods, and other categories, with amounts periodically adjusted. Ohio’s exemption amounts increased on April 1, 2025 and remain in effect through March 31, 2028 (check current figures). (Ohio Laws, U.S. Bankruptcy Courts)
Divorce crossover: Exemption planning affects what’s “in the estate” vs. excluded, which in turn affects what a domestic court can equitably divide while the stay is in place.
Support, Arrears, and Priority Treatment in Chapter 13
Priority: DSOs receive priority and must be addressed in the plan; you must be current on post-petition support to receive a Chapter 13 discharge. (United States Courts)
Enforcement continues: Wage withholding and other support collection tools continue notwithstanding the stay. (Legal Information Institute)
Joint Debts, Indemnity, and “Hold Harmless” Clauses
Divorce decrees often say one spouse will “assume and hold the other harmless” on a joint debt. Three practical realities:
Your creditor is not bound by your divorce decree; if your ex defaults, the creditor can pursue you unless the debt was paid or discharged.
A hold-harmless obligation is typically a § 523(a)(15) property-division debt: nondischargeable in Chapter 7; potentially dischargeable in Chapter 13 after plan completion. (Legal Information Institute)
If the obligation is truly support in function (e.g., paying a debt instead of support), courts may treat it as a DSO—which never discharges. Classifying the obligation correctly is critical. (Legal Information Institute)
Real-World Scenarios (Columbus & Athens, Ohio)
Behind on the mortgage: Chapter 13 can catch up arrears over 3–5 years while the domestic court finalizes custody and support; staying current post-petition is key. (United States Courts)
High-interest joint cards: If assigned as property division, Chapter 7 won’t erase the hold-harmless duty; Chapter 13 might after plan completion. (Legal Information Institute)
Support arrears while filing: The stay won’t block enforcement from non-estate sources or wage withholding; a Chapter 13 budget is key for cashflow. (Legal Information Institute)
Small business or variable income: Means-testing and plan feasibility deserve early modeling; consult bankruptcy counsel on the business-debt vs. consumer-debt mix (means test applies primarily to consumer debtors). (ABI)
FAQs (Ohio-Focused)
Q1: Will filing bankruptcy stop my divorce?No. Dissolution of the marriage, custody/visitation, and support establishment/adjustment can continue; property division involving estate property is typically stayed. (Legal Information Institute)
Q2: Can I discharge past-due child support or spousal support? No. Support is a domestic support obligation and is nondischargeable in both Chapter 7 and Chapter 13. (Legal Information Institute)
Q3: Are property-division debts dischargeable? In Chapter 7, no—§ 523(a)(15) makes them nondischargeable. In Chapter 13, many such debts can be discharged after plan completion because § 1328(a)(2) does not include § 523(a)(15) in its exceptions. Classification and plan terms matter. (Legal Information Institute)
Q4: Should I file jointly with my spouse before we divorce? Sometimes. A joint Chapter 7 can clear unsecured debt cheaply and simplify the divorce, but consider the means test, exemptions, and whether either spouse might need Chapter 13 instead. (United States Courts)
Q5: Do I have to take a class before filing bankruptcy? Yes. Individuals generally must complete credit counseling within 180 days before filing, through an approved agency. (Justice.gov)
Coordinated Strategy Wins
Bankruptcy during divorce is less about “beating” a creditor and more about sequencing the right tools. A well-timed filing can protect your home, reset budgets, and eliminate unmanageable debt—while your domestic case establishes sustainable support and parenting schedules. The key is coordination.
If you’re weighing bankruptcy in the middle of a divorce—or anticipating one—speak with a Columbus Ohio divorce attorney who understands how the Bankruptcy Code and Ohio domestic-relations law interact in real life.
Contact Andrew Russ Law to discuss a plan that fits your family, your timeline, and your budget.
Sources
U.S. Courts – Bankruptcy Basics (Ch. 7 & Ch. 13 overviews; discharge basics). (United States Courts)
11 U.S.C. § 362(b)(2) – Family-law exceptions to the automatic stay. (Legal Information Institute)
11 U.S.C. § 523(a)(5), § 101(14A) – Domestic support obligations; nondischargeability. (Legal Information Institute)
11 U.S.C. § 1328(a)(2) – Chapter 13 discharge exceptions (note: § 523(a)(15) not listed). (Legal Information Institute)
Ohio Revised Code § 3105.171 – Equitable division of marital/separate property. (Ohio Laws)
Ohio exemptions – R.C. 2329.66; 2025 increase notice from the U.S. Bankruptcy Court (S.D. Ohio). (Ohio Laws, U.S. Bankruptcy Courts)
Ohio Domestic and Juvenile Legal Sources:
Ohio allocation of parental rights & shared parenting (R.C. 3109.04). (Ohio Laws)
Parenting time statute and scheduling (R.C. 3109.051). (Ohio Laws)
Presumptions and establishment of paternity (R.C. 3111.03). (Ohio Laws)
Paternity acknowledgment routes (Ohio Centralized Paternity Registry). (ODJFS)
Child support worksheet and definitions (R.C. 3119.022; 3119.01). (Ohio Laws)
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Disclaimer: This article provides general information and is not legal advice. Legal outcomes vary by facts and jurisdiction. Consult an attorney about your specific situation.
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Disclaimer: The blog and articles provide general educational information, are not legal advice, and do not create an attorney/client relationship. Legal outcomes vary by facts and jurisdiction. Consult an attorney about your specific situation.
