Divorce Debt

[filingin08]

Preface: Please no flaming or moral judgements.

DH has substantial marital debt from his first marriage. Our atty said it is dischargeable in a 13 - at least his obligation on it.

Yesterday the XW applied pressure for him to remove her name from the credit as per their divorce decree. (She does not yet know we are going to file.) She threatened to hire an atty and seek a judgement against him.

Question for you all... are we now in a race to beat her to the punch? Should we strive to file before she seeks legal advice? Does it matter if she does get a judgement? Can that be included in BK and is it considered priority?

I've left a message for our atty, but she has not responded yet.

Also, if you were in our situation, would you tell her about the BK before she hires an atty? I'm of the opinion if she is going to end up with the debt anyway, then there's no reason for her to be out any cost and we should tell her. On the other hand, she can be a very vindictive person (not always without cause) and am a little worried what she might do.

Thanks,
Kelly

[papa0881]

DH divorced husband?
XW X wife?

[magyar123]

He better get her name off of accounts that he and his ex had - before he/you file bankruptcy.

[scottsnewlight]

I have a reply, but to long for here, check your Private Messages on this site,

[arkienurse]

DH divorced husband?
XW X wife?

DH- Dear Husband, Darling Husband, Dick H(well you get the idea I am sure)

DW would be dear wife, etc.
DD/ DS - dear daughter/son
XW- yeah that would be x wife I am sure

[arkienurse]

Preface: Please no flaming or moral judgements.

DH has substantial marital debt from his first marriage. Our atty said it is dischargeable in a 13 - at least his obligation on it.

Yesterday the XW applied pressure for him to remove her name from the credit as per their divorce decree. (She does not yet know we are going to file.) She threatened to hire an atty and seek a judgement against him.

Question for you all... are we now in a race to beat her to the punch? Should we strive to file before she seeks legal advice? Does it matter if she does get a judgement? Can that be included in BK and is it considered priority?

I've left a message for our atty, but she has not responded yet.

Also, if you were in our situation, would you tell her about the BK before she hires an atty? I'm of the opinion if she is going to end up with the debt anyway, then there's no reason for her to be out any cost and we should tell her. On the other hand, she can be a very vindictive person (not always without cause) and am a little worried what she might do.

Thanks,
Kelly

Are the debts going to be paid 100%? If not, I would be worried that DH could get in trouble for not having xw removed from them. Heck, I would worry about him being in trouble period for not removing her name from them.

[filingin08]

Our atty told us in a BK7 DH (dear husband's) debt would be wiped out; however, XW (ex-wife) could sue in court for breach of the divorce decree.

In a BK13 however, ALL his obligation for the debt is wiped out. Creditors would get whatever they got and potentially go after her for the balance.

My best understanding is that the BK courts have superiority over the family courts.

We don't have good credit to move the credit to his name only or to ours. We would have done that already if we could

[Dirk Squarejaw]

Our atty told us in a BK7 DH (dear husband's) debt would be wiped out; however, XW (ex-wife) could sue in court for breach of the divorce decree.

In a BK13 however, ALL his obligation for the debt is wiped out. Creditors would get whatever they got and potentially go after her for the balance.

My best understanding is that the BK courts have superiority over the family courts.

We don't have good credit to move the credit to his name only or to ours. We would have done that already if we could

After doing some research the past few months, that is what I have found out. If you file a BK7, you don't have very little to no protection against the EX and they may take you to court for contempt for not following the divorce decree. However, the spouse also needs to have the money to hire a lawyer, etc. otherwise they are stuck paying the debt and/or filing bankruptcy themselves. A BK13 is probably the safest bet if you have the income to support the plan. That way, the EX doesn't have any recourse against you discharging the debt.

* This only applies to debts assigned by the decree to be paid to a 3rd party. If it is spelled out in the decree as alimony or support paid directly to the EX, then it most likely cannot be discharged.

[filingin08]

What if she successfully gets a judgement? Do you know if that would be treated differently than the divorce debt?

[car67]

I would think it would really depend on on much time has passed since the divorce was granted?

If it less then 180 days and your going to file I think the court can mandate at filing that by previous court order in family court that the spouse is not liable for these debts per the divorce decree.....

Doesnt really matter too much anyways cause the collectors
will sell the paper and it will get picked up by third parties who will assign both names over and over and over again... it never ends

[rrockinggramma]

i would definitely give her a head's up. I wouldn't want to get blindsided with that information. In a chapter 13 the co debtor stay will protect her but after your discharge creditors will come after her. And if the decree stated that the debt was to be paid off by him, then maybe that can be worked out as "priority" as part of the chapter 13 so the debts with her on it do get paid off in the chapter 13. . .