Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you so much. I will wait
Thanks for your patience, what will happen is that there will be another 341a meeting held but the chapter 7 trustee, the chapter 7 trustee will see if he qualifies and if so it will proceed towards a discharge of all of his unsecured debts. You really have no grounds to object to the conversion, unless you believe that he has not been honest in disclosing his income or assets.
In a chapter 7 the debt he owes you will be most likely eliminated and discharged, you might want to check with a family law attorney to see if you have any recourse in the family law court, but my understanding is that you do not.
Unfortunately or fortunately depending on which side you are on this happens frequently in divorce cases.
I have read that certain property settlement agreements can not be discharged. The notice said there will be a meeting on 3/26, the date that was set for his confirmation. So there will be another Trustee asigned? What about all the documentation. Will a new trustee see all the documentation? And will I have to file a new claim.
So I should just show up and state my case to the new trustee and see what happens.
To be clear, there is no question that a bankruptcy, which is a function of Federal law and not of state law as divorce decrees are, will discharge either divorcing spouse from an obligation to pay the creditor. That creditor, after the bankruptcy discharge, is barred by the Federal bankruptcy discharge injunction from pursuing a collection of the debt or from failing to report it to the credit bureaus as discharged in bankruptcy. However, if the divorce decree obligates the bankrupt spouse to some or all of a joint debt shared with his or her ex-spouse, a failure to continue to pay that debt may incur a liability for breach of the divorce decree to the ex-spouse.
In other words, the ex-spouse is a creditor of sorts for that same debt.
It is possible to list the ex-spouse as a creditor in the bankruptcy petition in order to discharge that level of the obligation along with the bank or credit union holding that actual note or contract, but the discharge of that obligation may be non-dischargeable under the Bankruptcy Code. The Code, in Section 523(a)(15), states that an obligation of this sort to a spouse, former spouse, or child that arises from a court order or divorce decree is not dischargeable.
However, for this debt to be found to be non-dischargeable, the former spouse must file what is called an adversary proceeding in the bankruptcy court seeking to have the court declare the debt to be non-dischargeable. This adversary proceeding is a civil lawsuit within the Bankruptcy Court, and the former spouse filing the suit bears the burden of proving that his or her harm in having the debt discharged is greater than the bankrupt spouse’s harm in continuing to pay it.
More interesting is the fact that Section 523 applies only to Chapter 7 bankruptcies and not to Chapter 13 bankruptcies. Thus, a marital debt obligation arising from a “hold-harmless” clause or other obligation arising from a marital divorce decree or separation agreement that is not dischargeable in Chapter 7 may be discharged if the obliged spouse files Chapter 13.
Sorry I contacted you while you are vacation. I wanted to let know what happen.
Have a great vacation.
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