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.

On-Demand: May 14, 2025

2 hour CLE

Tuition: $195.00
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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)

Closed-captioning available

Speakers

Speaker_John C. Ruddy_myLawCLEJohn 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)

Credits

Alaska

Approved for CLE Credits
1 General, 1 Ethics

Our programs are CLE-eligible through Alaska’s recognition of multi-jurisdictional reciprocity.
Alabama

Approved for Self-Study Credits
1 General, 1 Ethics

Arkansas

Approved for CLE Credits
1 General, 1 Ethics

Arizona

Approved for CLE Credits
1 General, 1 Professional Responsibility/Ethics

California

Approved for CLE Credits
1 General, 1 Ethics

Colorado

Pending CLE Approval
1 General, 1 Ethics / Professionalism

Connecticut

Approved for CLE Credits
1 General, 1 Ethics / Professionalism

District of Columbia

No MCLE Required
2 CLE Hour(s)

Delaware

Pending CLE Approval
1 General, 1 Enhanced Ethics

Florida

Approved via Attorney Submission
1 General Hours, 1 Ethics Hours

Receive CLE credit in Florida via attorney submission.
Georgia

Approved for CLE Credits
1 General, 1 Ethics

Hawaii

Approved for CLE Credits
1.2 General, 1.2 Ethics or Professional Responsibility Education

Iowa

Pending CLE Approval
1 General, 1 Ethics

Idaho

Pending CLE Approval
1 General, 1 Ethics / Professionalism

Illinois

Approved for Self-Study Credits
1 General, 1 Ethics, Civility, Professionalism

Indiana

Approved For On-Demand Credits
1 General, 1 Ethics

Kansas

Pending CLE Approval
1 Substantive, 1 Ethics / Professionalism

Kentucky

Pending CLE Approval
1 General, 1 Ethics

Louisiana

Pending CLE Approval
1 General, 1 Ethics

Massachusetts

No MCLE Required
2 CLE Hour(s)

Maryland

No MCLE Required
2 CLE Hour(s)

Maine

Pending CLE Approval
1 General, 1 Ethics / Professionalism

Michigan

No MCLE Required
2 CLE Hour(s)

Minnesota

Approved for Self-Study Credits
1 General, 1 Ethics

Missouri

Approved for Self-Study Credits
1.2 General, 1.2 Ethics

Mississippi

Pending CLE Approval
1 General, 1 Other (Ethics / Professionalism)

Montana

Pending CLE Approval
1 General, 1 Professional Fitness and Integrity

North Carolina

Pending CLE Approval
1 General, 1 Ethics

North Dakota

Approved for CLE Credits
1 General, 1 Ethics

Our programs are CLE-eligible through North Dakota’s recognition of multi-jurisdictional reciprocity. Section 1, Policy 1.14
Nebraska

Pending CLE Approval
1 General, 1 Professional Responsibility

myLawCLE reports attendance to Nebraska on each attorney’s behalf for all programs. Please do not self-report.
New Hampshire

Approved for CLE Credits
60 General minutes, 60 Ethics / Professionalism minutes

As of July 1, 2014, the NHMCLE Board no longer provides pre- or post-approval of courses. Attendees must self-determine whether a program is eligible for credit, and self-report their attendance online at www.nhbar.org, based on qualification provisions of Rule 53.
New Jersey

Approved for CLE Credits
1.2 General, 1.2 Ethics / Professionalism

Our programs are CLE-eligible through New Jersey’s recognition of multi-jurisdictional reciprocity, except for the courses required under BCLE Reg. 201:2
New Mexico

Approved for Self-Study Credits
1 General, 1 Ethics / Professionalism

Nevada

Approved for Self-Study Credits
1 General, 1 Ethics / Professionalism

New York

Approved for CLE Credits
1.2 General, 1.2 Ethics / Professionalism

Our programs are CLE-eligible through New York’s Approved Jurisdiction Group “B”.
Ohio

Approved for Self-Study Credits
1 General, 1 Professional Conduct

Oklahoma

Pending CLE Approval
1 General, 1 Ethics / Professionalism

Oregon

Pending CLE Approval
1 General, 1 Ethics

Pennsylvania

Approved for Self-Study Credits
1 General, 1 Ethics / Professionalism

Rhode Island

Pending CLE Approval
1 General, 1 Ethics / Professionalism

South Carolina

Pending CLE Approval
1 General, 1 Ethics / Professionalism

South Dakota

No MCLE Required
2 CLE Hour(s)

Tennessee

Approved for Self-Study Credits
1 General, 1 Dual

Texas

Approved for CLE Credits
1 General, 1 Ethics / Professionalism

Utah

Pending CLE Approval
1 General, 1 Ethics / Professionalism

Virginia

Not Eligible
1 General Hours, 1 Ethics / Professionalism Hours

Vermont

Approved for CLE Credits
1 General, 1 Ethics

Washington

Approved via Attorney Submission
1 Law & Legal Hours, 1 Ethics Hours

Wisconsin

Approved for Self-Study Credits
2 General

West Virginia

Pending CLE Approval
1.2 General, 1.2 Ethics / Professionalism

Wyoming

Pending CLE Approval
1 General, 1 Ethics / Professionalism

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