341 Complete But I Have An Issue

[MrSteve777]

My 341 went perfectly and I was very relieved but, my ex wife has sent a certified letter that she is sueing me. In our divorce I was supposed to pay off a credit card and couldn't. She is sueing me for breech of the divorce decree and not paying off the credit card. Do I wait for the suit to be filed or do I go ahead and include her demand for payment in the banckruptcy? I've tried to pay the card off but I am unable to do it. What happens in a situation like this and how should I handle it?

Steve

[helpmeout]

You may not be able to discharge this debt if there is a clause in your court order that says you will hold your ex harmless if you file bankruptcy (it's in mine). If there is, a family court will order you to pay it. The family court may still order you to pay it even if it isn't in there. You may want to consult with a family law attorney.

[SMinGA]

Checking your divorce paperwork sounds like a good place to start.

My (limited) understanding of divorce decrees in terms of who pays what is that the divorce order does NOT override the original contract. So if her name is on the account the creditor can pursue her even if you are obligated in the divorce. Whether or not you can discharge the divorce responsibilities in BK, I have no idea... Probably should discuss this with your attorney.

[justbroke]

Your wife should be careful. You're under the protection of the automatic stay right now. The threat of a lawsuit is considered continuing the collection of a debt. Unless they filed for relief, they may be in violation of the automatic stay by sending such a letter, regardless of whether the debt is dischargeable or not. That's my first issue.

Second, you should deal with items in a final divorce decree by filing a complaint to determine dischargeability, if you want that liability removed. While you would need to prove that it should be discharged, you can actually get certain things discharged.

I would be talking to your bankruptcy attorney about discharging the specific terms in the divorce decree. I haven't gone through divorce and bankruptcy, but the interplay in 11 USC 523(a)(15) is important. You may be able to discharge the debt. Perhaps your ex-spouse's letter is really about filing a complaint within the bankruptcy to determine the dischargeability. In any case, you have some work to do if you want this actually discharged.