The debt is guaranteed in our divorce decree. Can it be vanquished?

[Sven62]

My ex is filing for Chap 7. She owes a debt to me that is covered in our divorce decree. Specifically it states she shall pay the monthly payments until the debt is paid. She is telling me this debt will be vanquished in the bankruptcy.

Can this be true?

If so, can I prevent it?

Thanks in Virginia

[AngelinaCat]

Hi Sven62. Welcome to the forum!

As to whether the debt your ex owes can be 'vanquished' depends. We would need to know some more details in order to make useful responses. What type of debt is it?

[HHM]

Generally no. In chapter 7 bankruptcy, if a debt is assigned to a spouse via a divorce decree, that liability is not discharged. Note, the ex-spouses liability to the bank will be discharged (if the underlying debt was a joint debt), but the ex-spouses liability under the divorce decree to pay the monthly payment is NOT discharged in chapter 7 BK. (it really doesn't matter what sort of debt it is). So, if the ex were to stop paying, you could go back into family court for a contempt order.

Now, that is not the case in chapter 13 BK. Debts divided in a divorce are dischargeable in chapter 13.

Note, if the underlying debt is for back child support or spousal support, (doesn't sound like that is the issue here), those are never dischargeable in bankruptcy.

[helpmeout]

Now, that is not the case in chapter 13 BK. Debts divided in a divorce are dischargeable in chapter 13.

Except if the following wording is in the court order: All aspects of this agreement are to be considered support. Then it doesn't matter whether it's a Chapter 7 or a Chapter 13, it's not dischargeable as it is support even if it was just a joint credit card debt. It's worded that way in my court order. Fortunately, I had the only debt in both names refinanced a couple of years before filing a Chapter 7 so I did not have this issue.

[HHM]

All aspects of this agreement are to be considered support.

That may have worked in your case, but I don't believe the bankruptcy court is necessarily bound by a divorce court "characterization" of a debt unless the statement is more specific and there are some findings of fact that support the idea that the payment of the debt is indeed meant as support.

[helpmeout]

That may have worked in your case, but I don't believe the bankruptcy court is necessarily bound by a divorce court "characterization" of a debt unless the statement is more specific and there are some findings of fact that support the idea that the payment of the debt is indeed meant as support.

That is true. But if the ex who was supposed to be paid for the debt took the ex who declared BK to family court, that ex would not be in violation of any BK laws for upholding what is essentially a support order.