How is Marital Debt After Divorce Handled in Bankruptcy?
Full Question:
Answer:
Please see the following information from the following site:
https://www.vtbar.org/Images/Journal/journalarticles/Spring2006/BankruptcyUpdate.pdf
"Since October 17th, with the modification of Title 11 U.S.C. § 523(a)(15), one other significant debt may now be dischargeable under Chapter 13 but not under Chapter 7. BAPCPA deleted the two “tests” satisfaction of which had been required in order for a debt arising from a divorce or separation to be excepted from discharge. Now all debts to a spouse, former spouse, or child of the debtor that (a) are not Domestic Support Obligations (“DSOs”) and (b) were incurred in the course of a divorce or separation or in connection with a separation agreement, divorce decree, or other order of a court of record, are excepted from discharge in Chapter 7. However, Title 13 § 1328(a)(2), specifying the non-dischargeable debts under Chapter 13, makes no reference to the § (a)(15) non-support marital debts."
We are unable to advise you on what form ro file or which Chapter to file, as this service provides information of a general legal nature. We suggest you consult a local bankruptcy attorney who can review all the facts and documents involved.
See also:
http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000523----000-.html