DISCHARGE OF BANKRUPTCY DIVORCE DEBTS
|TYPE OF DEBT
|TYPE OF BANKRUPTCY
Obligations ("in the nature of" child and/or spousal support /
Chapter 11 and Chapter
|No bankruptcy court
litigation is necessary except possibly to resolve a dispute of whether
or not debt
is "in the nature of" support.
|Settlement agreements or
decrees regarding divorce property and non-suppport types of debts
|Chapter 7 and Chapter 11
|Dischargeable as to a
creditor but not dischargeable
as to any obligation to reimburse the spouse for payments that such
spouse made or owes to
|No bankruptcy court
litigation is necessary. But spouse sometimes might have to sue
debtor in State court to enforce this type of obligation.
paying as much as feasible to the spouse under an approved
Chapter 13 "plan").
|Spouse might, in certain
cases, be able to
reopen the State court divorce case and seek modification to equitably
reallocate the terms closer to the original obligation amounts
before the debtor received the bankruptcy discharge.
automatically stops a
pending divorce (dissolution of marriage) case for a period of time
regarding property division;
but it does not stop the
divorce case concerning issues of termination of marriage, support,
alimony, child visitation, paternity,
and domestic violence for example.
Spouse's Divorce Attorney's
Fees: If the marital agreement or divorce decree states that
the debtor owes
all or part of the spouse's attorney’s
fees, then, depending on the
terms, such attorney's fees may or may not be dischargeable in
Timing of Divorce and
and his or her spouse may both file bankruptcy together or separately;
or one may file bankruptcy and not the other; one or both may file a
Chapter 7, 11 or 13 type of bankruptcy before, during or after the
divorce case. Any and all of the scenarios may have an effect on
the dischargeability and the obligations that flow from the divorce as
well as the strategies implimented.
Seek Legal Counsel: Due
to the complexities involved, divorce attorneys, tax professionals, and
bankruptcy attorneys ought to be consulted and/or retained before
filing a bankruptcy in which a divorce is or may be involved.
Consider Marital Counseling: Lastly,
if you have not already done so, I encourage you (or both of you) to
seek out professional marital counseling and/or, for believers,
pastoral counseling with a godly and wise minister/pastor at a
Bible-believing Christian church. Although you may
perceive that there are "irreconcilable differences" beyond repair, sometimes a neutral person such as
a counselor, minister or pastor can
help the parties sees the issues
more clearly and help provide solutions to seemingly impossible
situations. There is nothing to lose by going at least one
"With God, all things are possible" (Matthew 19:26; Mark 10:27).
God freely reconciled
us through Jesus when we
were impossibly rebellious sinners (bridging an infinite
separation), and if God can restore our relationship with Himself, then
can capably restore a marital relationship to those who will trust Him
to do so! (Mark 9:23). But whatever happens, God will work all
things together for your ultimate good (Romans 8:28).
Author: Mathew B. Tozer
the new bankruptcy laws, Matthew Tozer is a debt relief agency
people file for bankruptcy relief under the Bankruptcy Code.
to Bankruptcy FAQ
to Christian Bankruptcy Attorney