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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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Well received a notice today that my ex is wanting to convert

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Well received a notice today that my ex is wanting to convert to a chapter 7 bankruptcy. I dont have the letter in front of me but says that if I contest this request to let I think his attorney, know. If they disagree then for me to show up at the meeting on 3/26. What should I do?

cortrightlaw : You saw that one coming, I am out right now give me about an hour and I will respond to your question if that is okay.
Customer:

Thank you so much. I will wait

cortrightlaw :

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.

cortrightlaw :

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.

cortrightlaw :

Unfortunately or fortunately depending on which side you are on this happens frequently in divorce cases.

Customer:

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.

cortrightlaw : As far as I know the only thing that can not be discharged is past due spousal or child support. The new trustee should te the file, and as to filing a claim you can file a new claim but it might not matter since it is a chapter 7 there will Not be any distribution of assets.
Customer:

So I should just show up and state my case to the new trustee and see what happens.

cortrightlaw : It couldn't hurt, that way you can make sure they are at least aware of your concerns.
Customer:

Thank You

cortrightlaw and other Bankruptcy Law Specialists are ready to help you
I found some more information for you, looks like you might be able to file an adversary proceeding for non dischareability. It would be alot of work and probably not worth the effort but I just wanted to give you the information I came across.

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.

Customer: replied 5 years ago.
Is this something that I can do or will it take hiring an attorney?
You would need to hire an attorney, thats why I am concerned that it would cost more then you would recover.
cortrightlaw and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
I wanted you to know that my ex plan was confirmed over the weekend. I waited until the judge was finish and he ask if there was anyone not called .i said me. He said that ex case was confirmed over the weekend. An amendment was filed which added me as a pay in the plan claim. 100 percent. This took care of my objection. So they confirmed it over the weekend. It was quite of a surprise. But at lest I have as much protection as I could get to have ex pay me what he owes. Much slower than I would like but maybe get the full amount. I never received a copy of the amended plan.
Yes you are in the best position you can be in with him in bk, at least you will get paid back even if it is a little slow. Sorry for the slow response but I'm on vacation this week.
Customer: replied 5 years ago.

Sorry I contacted you while you are vacation. I wanted to let know what happen.

Have a great vacation.

 

No problem, I am glad you got through this feel free to request me if something changes.