The Impact of Chapter 13 Bankruptcy on Divorce: Automatic Stay, Property Division, Spousal & Child Support (Including 1 hour of Ethics)

John C. Ruddy
John C. Ruddy | Ruddy & Petersen Law Group, LLC

John is a managing member in the firm Ruddy & Petersen Law Group, LLC, in Aurora, Illinois. John concentrates his practice in the areas of litigation concerning real estate, bankruptcy reorganization, commercial matters, eminent domain, and consumer disputes. He has been practicing since 1977.

Live Video-Broadcast: May 14, 2025

2 hour CLE

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Program Summary

Session I - Understanding the Intersection of Chapter 13 Bankruptcy and Divorce

This session will provide a comprehensive summary of how Chapter 13 bankruptcy impacts divorce proceedings. Attendees will gain insight into the complexities of the automatic stay and its effect on family law cases, the role of bankruptcy court in property division, and how debt repayment plans interact with divorce settlements. The session will also address the treatment of spousal and child support obligations under Chapter 13 and explore strategic considerations around the timing of bankruptcy and divorce filings.

Key Topics

  • Automatic stay & divorce proceedings
  • Property division & bankruptcy court
  • Debt repayment plan vs. divorce
  • Spousal & child support
  • Timing of filing

Session II - Ethical Considerations in Divorce and Bankruptcy Proceedings

We will explore the unique ethical challenges attorneys face when navigating cases that involve both family and bankruptcy law. This session will examine potential conflicts of interest under Rules 1.7 and 1.9, as well as the attorney’s duty to act diligently and communicate effectively with clients (Rules 1.3 and 1.4). Participants will gain clarity on maintaining client confidentiality while complying with disclosure obligations under Rule 1.6 and Bankruptcy Code § 521. The discussion will also address avoiding the unauthorized practice of law (Rule 5.5), maintaining candor and honesty before the court (Rules 3.3 and 8.4(c)), and implementing best practices for ethically managing the complexities of dual legal issues (Rules 1.16 and 2.1).

Key Topics

  • Conflicts of interest (Rule 1.7 & 1.9)
  • Attorney duties under bankruptcy and family law (Rule 1.3 & 1.4)
  • Confidentiality & disclosure requirements (Rule 1.6 & Bankruptcy Code § 521)
  • Avoiding unauthorized practice of law (Rule 5.5)
  • Candor to the court & duty of honesty (Rule 3.3 & 8.4(c))
  • Best practices for managing dual legal issues (Rule 1.16 & 2.1)

This course is co-sponsored with myLawCLE. 

Date / Time: May 14, 2025

  • 1:00 pm – 3:10 pm Eastern
  • 12:00 pm – 2:10 pm Central
  • 11:00 am – 1:10 pm Mountain
  • 10:00 am – 12:10 pm Pacific

Closed-captioning available

Speakers

Speaker_John C. Ruddy_MDBJohn C. Ruddy | Ruddy & Petersen Law Group, LLC

The Ruddy family has been practicing law in Kane County since 1927. John Ruddy’s father, Clarence Ruddy, was a 1922 graduate of East Aurora High School. While attending East High, his father was captain of the debate team. His father later attended Notre Dame Law School in the Knute Rockne era and was founder of the Notre Dame Law Review. John is grateful to his wife Lorna for all the support she has given him during the course of their 40-year marriage.

John graduated from Marmion Military Academy in Aurora in 1968. Thereafter, he graduated from the University of Denver and obtained his J.D. from John Marshall Law School, which is now a graduate school of the University of Illinois in Chicago. John Ruddy began practicing law in 1977 with his father (Clarence), brother (Phillip), Charles Myler and retired Judge Donald Fabian. John is deeply grateful for the advice that they gave him on how to protect a client’s interests while maintaining high ethical standards. John is proud to continue the Ruddy tradition of practicing law in the Chicago area.

John is a managing member in the firm Ruddy & Petersen Law Group, LLC, in Aurora, Illinois. John concentrates his practice in the areas of litigation concerning real estate, bankruptcy reorganization, commercial matters, eminent domain, and consumer disputes. He has been practicing since 1977. John advises and represents the firm’s clients on real estate foreclosure proceedings, including the implementation of sheriff’s sales. John also advises and represents loan borrowers on defenses and counterclaims to mo11gage foreclosure proceeding, including the Fair Credit Agreements Act, the Real Estate Settlement Protections Act, the Truth in Lending Act, the Fair Debt Collection Practices Act and the Illinois Consumer Fraud Act. John is an active member of the Kane County Bar Association and has been a co-chair along with Brie Crawford of the Business Issues Committee for several years. In addition to studying law, John enjoys going overseas, studying foreign languages and foreign cultures. John enjoys studying Chinese, Spanish, and French.

Agenda

Session I – Understanding the Intersection of Chapter 13 Bankruptcy and Divorce | 1:00pm – 2:00pm

  • Automatic stay & divorce proceedings
  • Property division & bankruptcy court
  • Debt repayment plan vs. Divorce
  • Spousal & child support
  • Timing of filing

Break | 2:00pm – 2:10pm

Session II – Ethical Considerations in Divorce and Bankruptcy Proceedings | 2:10pm – 3:10pm

  • Conflicts of interest (Rule 1.7 & 1.9)
  • Attorney duties under bankruptcy and family law (Rule 1.3 & 1.4)
  • Confidentiality & disclosure requirements (Rule 1.6 & Bankruptcy Code § 521)
  • Avoiding unauthorized practice of law (Rule 5.5)
  • Candor to the court & duty of honesty (Rule 3.3 & 8.4(c))
  • Best practices for managing dual legal issues (Rule 1.16 & 2.1)
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