Discharging a debt from divorce?

[bkmom]

Hopefully this is the right place to post this.

Current husband and I are filing Ch 7. We're a one income household and well below the income threshold.

I got a divorce in 2009 and in the decree it states that I'm responsible for refinancing and assuming the responsibility of a vehicle. I tried to refinance but was told that they didn't refinance (JDByrider) and that once the vehicle was paid off, they would issue the title in my name only. In late 2010, I voluntarily gave the vehicle back to the financing company, they auctioned it, and now I'm responsible for the remaining balance (over $4K). In the past 3 years, I was not working and the finance company went after my ex-husband. He has had his check garnished off and on the past 3 years.

Now that I am employed, they have resumed pursuing me and now my check is being garnished.

When I file Ch 7, is this debt dischargeable? If not, do I have any options seeing as how we're unable to pay our basics (rent, utilities)?

Ex-husband also had a vehicle in both our names and it was repo-ed as well but I've never heard from that company (buy here, pay here). Should I also include it?

Thank you all in advance.

[despritfreya]

Your liability to JDByrider will be subject to the discharge however, your liability to the ex husband will not. In general, to the extent the ex husband is required to pay the debt (pre and post filing of your bk) he will have the right to seek payment from you. See 11 USC 523(a)(15).

Des.

[keepmine]

Ex-husband also had a vehicle in both our names and it was repo-ed as well but I've never heard from that company (buy here, pay here). Should I also include it?

Thank you all in advance.

Yes-include anyone who could conceivably have a claim.

[bkmom]

Just to clarify, I can file BK and discharge the debt from JDB and my ex-husband at the same time. Correct?

[despritfreya]

Just to clarify, I can file BK and discharge the debt from JDB and my ex-husband at the same time. Correct?

Not correct. If you file a Chapter 7 NOTHING that arises from a divorce decree is dischargeable. Period. Any obligation that you have to protect your ex husband from any debt will remain. Your ex husband can seek recovery from you to make sure any debt you were ordered to pay is paid. Normally this does not come into play until the ex spouse is forced to pay something that the other ex spouse was ordered to pay. The underlying creditor does not have a claim against you under 523(a)(15). The ex husband does. Google 11 USC 523(a)(15).

Des.