Chapter 13 does write off certain divorce debts. But it does so with some important conditions and disadvantages that you need to consider. Last week we explained how Chapter 7 cannot write off non-support divorce debts, but Chapter 13 can. We said if you owe a significant debt created by your divorce decree (for other than child or spousal … Read More
Chapter 7 does not write off any divorce debts. But Chapter 13 can write off a divorce debt if it is not for child or spousal support. “Discharging” a Debt or Legal Obligation When you successfully complete a consumer bankruptcy, you get a discharge of some or all of your debts. When a debt is discharged the creditor is … Read More
If getting separated or divorced while in a Chapter 13 case, you’ll likely each need a new lawyer for independent advice about what to do.
When deciding to file a Chapter 13 jointly with your spouse, realize that you can split that case later into two cases if you get divorced.
The 180-day rule also applies to marital property division, whether by agreement or court decree.
One special category of future assets in bankruptcy is property from a divorce–either from a property settlement agreement or court decree.
Even if you file bankruptcy, certain actions can still be taken against you in divorce court, or about family law matters.
Chapter 7 doesn’t write off any divorce-based debts. But Chapter 13 DOES write off non-support divorce debts.
You can’t legally write off child support or spousal support.
Before deciding that you have to sell your home to pay your ex-spouse, find out your legal options. You may be pleasantly surprised.
Chapter 13 is powerful for dealing with past-due support. But it’s even stronger in dealing with non-support divorce debts.
Your ex-spouse’s bankruptcy filing seldom helps you, even if it writes off a joint tax. But your own Chapter 7 or 13 can help you directly.
You’re usually completely liable on jointly filed taxes, regardless of a divorce decree saying youâre not. But the IRS may give you relief.
Chapter 13’s “super discharge” means that you can write off a portion of any non-support debts included in your divorce decree.
No kind of bankruptcy will write off support debts. Chapter 7 straight bankruptcy won’t write off NON-support debts. Chapter 13 will.
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