Hi again. This is the original attorney who help you last night.
Q: Would you please help me understand what you said in paragraph two? I do not understand what you mean by domestic support obligations cannot be dismissed ........if you are still obligated to those creditors yourself.
A: The Bankruptcy Code, in Section 523, specifically states that domestic support obligations are not dischargeable in bankruptcy. This means that even after a bankruptcy, the debtor is still obligated to pay domestic support obligations. Common domestic support obligations include child support and alimony, but the payment of a marital debt to a third party creditor can also be considered a domestic support obligation. For example, if you and your ex had a credit card in your name, and if the judge in the divorce ordered your ex to pay it, then that would likely be considered a domestic support obligation. This is because his payment to the credit card creditor relieves you of a financial burden. It is important to note two points: (1) You would still be liable to the credit card creditor until the debt is paid in full or settled. The reason is that the judge in the divorce cannot modify your contract with the credit card creditor. The judge can merely order your ex to pay the debt. (2) Your ex could file for bankruptcy and be discharged of his liability to the credit card creditor. However, he would still be liable to you for paying the credit card creditor because the judge's order to pay is a domestic support obligation to you (as stated above). So, in that example, if your ex were to file for bankruptcy and discharge the credit card debt, then the credit card creditor would not be able to sue him for nonpayment. The credit card creditor would be able to sue you for nonpayment. You would be able to demand that the court hold your ex in contempt and to force your ex to pay. But if your ex were to settle the credit card debt for less than what was owed, and the settlement releases you of liability, then that's all that you can ask for because all you were entitled to was relief of that debt. You were not entitled to an amount of money equal to the debt. That is one reason that you cannot now demand part of the 401k. You already got what the judge gave you ... relief of the debts. It doesn't matter whether that relief was received because your ex paid the debts in full, or because he settled for less.
Q: Will someone please answer my question I asked re: bankruptcy? Is all debt wiped away except for instance the student loans and his boat?
A: No, not all debt is wiped (or in bankruptcy lingo, "discharged"). There are many types of debts that are not discharged besides student loans. As previously stated, domestic support obligations are not discharged. Debts obtained through fraud are not discharged. Most types of tax debts are not discharged. There are others as well. The boat debt can be discharged, but the lien on the boat cannot be eliminated. This means that the boat creditor could repossess the boat if the loan is not paid, even though the loan itself was discharged. This means that if your ex chooses to walk away from the boat, then he can and the boat creditor cannot sue him. But the boat creditor can repossess the boat, sell it, and apply the proceeds to the unpaid loan. If the proceeds are not enough to payoff the unpaid loan, then the boat creditor is out of luck since your ex would not be liable due to the bankruptcy.
Does this answer your questions about bankruptcy?