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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Hi Lori, My ex was in the process of filing a chapter 13 bankruptcy.

Customer Question

Hi Lori, My ex was in the process of filing a chapter 13 bankruptcy. I showed up at the creditors meeting and told the trustee that my ex filed bankruptcy on a credit card balance that he was ordered to pay in our property settlement in our final decree. Because I was a joint account holder I was held responsible for the balance and was told that all my accounts with this bank would be restricted until the balance was paid in full. Also I would have a bad report on my credit file. At that time the Trustee told my ex bankruptcy attorney to fix this situation and list me as a priority claim. Today I received a notice that my ex is requesting a change from chapter 13 to a chapter 7 . I have read that certain property settlement is not dischargeble in a chapter 7. Do you have any knowledge of this situation?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Lawyer Lori replied 5 years ago.

Lawyer Lori :

Good morning. Sorry in the delay in responding. Unfortunately, I am not well versed in bankruptcy law so I will opt out of this question and refer it to a bankruptcy expert. However, even if she has it discharged in bankruptcy court, the family court may still be an option.

Lawyer Lori :

Do not respond to this question as that may delay your response time further.

Lawyer Lori :

Good luck.

Expert:  Ellen replied 5 years ago.
Welcome to JustAnswer,

I see that Lawyer Lori has opted out of your question. I can assist you.

If my answer is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.

The creditors can file suit against you to collect a debt. You can file suit against your former spouse for reimbursement.

Here is why.

The divorce decree states the rights between the spouses as to which spouse will make the payments on the joint debt. However it does not affect the right of the creditor to collect from either spouse.

Section 523 of the Bankruptcy Code excepts from discharge both property settlements and support obligations in Chapter 7 bankruptcy. However money to be paid as part of Marital Property Settlement Agreement would be dischargeable in a Chapter 13 bankruptcy. Money in the form of spousal support is considered a Domestic Support Obligation and thus it is not dischargeable in a Chapter 7 or Chapter 13 bankruptcy.

You can read the Code here:

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Customer: replied 5 years ago.
I am the creditor. He owes me the money. He is changing from chapter 13 to chapter 7 for what ever reason. I am lisited as a priority claim in his chapter 13. There has not been a confirmation hearing on the chapter 13. Should I go to the next meeting and give the chapter 7 trustee the story again? Is this meeting where I say I do not want the debt he owes me discharged? Will the new trustee see my claim and all the documentation scaned?
Expert:  Ellen replied 5 years ago.
I do understand these facts. The debt to you is not dischargeable by the chapter 7 bankruptcy regardless of whether you go to the 341 hearing
Customer: replied 5 years ago.
How does a debtor pay non dischargeable debts when a chapter 7 is filed?
Expert:  Ellen replied 5 years ago.

When the bankruptcy is completed (90-120 days), you may take any collection action to collect the debt that you were able to take prior to filing the bankruptcy
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience: Bankruptcy Lawyer. Experienced.
Ellen and 2 other Bankruptcy Law Specialists are ready to help you