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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Id like an expert in bankruptcy law from Massachusetts to

Resolved Question:

I'd like an expert in bankruptcy law from Massachusetts to answer my question. If I have to declare bankruptcy, will I still have to pay the property agreement in my divorce agreement? I divorced in 2002, the agreement stipulated that when my daughter turns 18 (May 2010), I'm to sell the house and give my ex $115,000 of equity. With the mortgage market downturn, there isn't even that much equity in the house. Also, I'm maxed out on credit cards because of my business suffering and ex reducing child support, but still have been able to meet the minimum credit card payments each month on time. However, they all just doubled my interest rates and now I'm scared I can't meet all the minimums. I don't know why they would do this because I'd think they wouldn't want to jeopardize me missing payments by making it harder! I don't want to do anything to further decrease my FICO score. I'm really worried and don't know what to do about this. Thanks for your help.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

Bankruptcy is a creature of both federal and state law. Although I am familiar with Massachusetts bankruptcy law, the dischargeability and treatment of property settlement agreements is governed by federal law and not state law.

Section 523 of the Bankruptcy Code excepts from discharge both property settlements and support obligations.This means that you would still need to pay the property settlement outlined in your divorce agreement.

You can read the Code here:

I hope that the information which I provided was helpful to you.

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,
Customer: replied 7 years ago.
Thanks you for your answer. Since I don't have any way to pay out this property agreement, and bankruptcy doesn't except it, what should I do?
Expert:  Ellen replied 7 years ago.
consider filing a chapter 7 bankruptcy to eliminate all of your unsecured debt.after your bankruptcy is complete, consider filing a petition with the court where you were divorced for modification of the property settlement agreement based upon the change of financial circumstances.
Customer: replied 7 years ago.
Are you absolutely sure in Massachusetts I can file a petition with the court for modification of the property settlement agreement based upon the change of financial circumstances? A Mass. attorney told me a year ago this was not possible. Why would I have to file Chap 7 first? Why Chap 7 instead of Chapo 13?
Expert:  Ellen replied 7 years ago.
I will defer to the Massachusetts attorney considered in the modification of the property settlement.

A Chapter 7 would result in an elimination of most unsecured debt. A Chapter 13 would reorganize the unsecured debt to pay over a period of time.
Customer: replied 7 years ago.
I would like a Mass attorney to help here, as I stated in my first submission today. Can just answer forward to a mass attorney?
Expert:  Ellen replied 7 years ago.
you can resubmit your 2nd/3rd question concerning modification of your property settlement agreement to a Massachusetts expert. However I have completely and thoroughly answered your initial question and I would appreciate it if you would click accept so that I am paid for my work. Thank you in advance.
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