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 you’re behind on support payments, filing under Chapter 13 can legally stop your ex-spouse and support enforcement from pursuing you.
The discharge of debts is just one of the tools of Chapter 13 for achieving your financial goals. It works differently than in Chapter 7.
One special category of future assets in bankruptcy is property from a divorce–either from a property settlement agreement or court decree.