I'm sorry to hear about your financial situation. Divorce often leads to bankruptcy, or multiple bankruptcies. Sounds like good news on your custody issue though.
Filing Chapter 7 may be a good course of action for you. Of course you will need to qualify to file Chapter 7, which means you have to pass the Means Test
, you cannot have filed a previous Chapter 7 within the preceding 8 years or a Chapter 13 which received discharge within the preceding 6 years, among other considerations.
Generally, pursuant to 11 U.S.C. 523(a)(15), divorce obligations (other than support) are not
dischargeable in Chapter 7 (though they are
dischargeable in Chapter 13). So, I assume she filed Chapter 13 since that would allow her to discharge her divorce obligation to pay the mortgage like she was supposed to. Technically, though, if you file Chapter 7 then any obligations you were supposed to pay in the divorce decree would not be discharged, but many courts will allow you to discharge the obligation in Chapter 7 when the other spouse filed bankruptcy since the debt cannot fall back on them due to their discharge. In fact, if you file Chapter 7, she may be able to convert her case to Chapter 7 also since her risk under the divorce decree will be basically mooted with your filing.
Obviously these issues can get very complicated, so you should discuss your options with an attorney who can give you advice based on your specific circumstances, but Chapter 7 is something you would want to discuss with your attorney since it may be a good way to get a fresh start.
I hope this helps! If you have any follow up questions, please ask!
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