January 12, 2006: Debtor was entitled to discharge of divorce-related property settlement debt on "inability to pay" theory.
A Chapter 7 debtor satisfied his burden of proving that he did not have the ability to satisfy his obligation to his former wife to hold her harmless on joint marital debts, and this property settlement obligation would not be excepted from discharge. The debtor's claimed monthly expenses of $2,147, which did not include any contribution to his retirement account, were reasonable, and the debtor, even when he was earning overtime pay, did not have any excess income that could be devoted to payment of this debt. Furthermore, the debtor did not have an operable car and owned no property to speak of.
A Chapter 7 debtor satisfied his burden of proving that he did not have the ability to satisfy his obligation to his former wife to hold her harmless on joint marital debts, and this property settlement obligation would not be excepted from discharge. The debtor's claimed monthly expenses of $2,147, which did not include any contribution to his retirement account, were reasonable, and the debtor, even when he was earning overtime pay, did not have any excess income that could be devoted to payment of this debt. Furthermore, the debtor did not have an operable car and owned no property to speak of.
Comment