Law Office of Allan E. Dunaway, PLC

Expensive divorce leads to Chapter 7 bankruptcy

Bankruptcy often carries a stigma, with the unstated implication being that someone who files for bankruptcy protection has done so because of his or her profligate spending habits. This does happen, as people find their spending out of control due to overuse of credit cards. But more often, other problems trigger a bankruptcy. Medical problems, especially when if combined to a job loss, can quickly swamp most people's finances. Another significant cause of bankruptcy is divorce.

And as with many things, a high income may only result in a more expensive divorce and bankruptcy. The actor Kelly Rutherford, who starred in "Gossip Girl," has filed a Chapter 7 bankruptcy due to her divorce and custody dispute with her ex-husband Daniel Giersch. According to, she owes $1.5 million in legal fees from the divorce.

She stated in an interview that, "I will never stop fighting for my children." The price of that determination has left her with $2 million in debt and assets of only $23,937. While the scale is greater, at one point, she earned $40,538.42 a month, protracted litigation in a divorce or custody case can quickly drain your finances.

During a divorce, you need to be careful and keep an eye on the prize to avoid winning a pyrrhic victory. A divorce that spends your savings, your children's educational funds and your retirement will hardly be a victory, no matter what the outcome.

If your divorce has left you in financial trouble, do not delay speaking with bankruptcy attorney, as they can advise you on how a bankruptcy can provide a financial fresh start to accompany your new life after your divorce.

Source:, "Kelly Rutherford Bankrupt Amid Custody Battle," Luchina Fisher, June 24, 2013 

No Comments

Leave a comment
Comment Information
Contact the Firm

Get Sound Advice In A Free Consultation

For sound bankruptcy advice you can count on, from a skilled lawyer who truly cares about your future, contact the Louisville Law Office of Allan E. Dunaway, PLC. We have two convenient locations: Louisville, Kentucky, and Jeffersonville, Indiana. Our main office in Louisville is located off the beaten path so you won't have to deal with downtown traffic and can pull right up to our door and walk right in.

Call us at 502-785-1005, or send an email message. Our law firm welcomes the opportunity to serve you in any way we can.

If for some reason personal bankruptcy is not for you, if you do not qualify for the Chapter 7 approach via the "means test" and Chapter 13 reorganization is not the answer, Allan E. Dunaway works hard to inform you of other appropriate means of debt settlement that suits your unique needs.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Kentucky Office

Indiana Office

714 Lyndon Lane
Suite 4
Louisville, KY 40222

Phone: 502-785-1005
Fax: 502-412-2258
Louisville Law Office Map

530 East Court Avenue
Jeffersonville, IN 47130

Phone: 502-785-1005
Fax: 502-412-2258
Jeffersonville Law Office Map