Confused

[jw062]

What is the name of your state? Louisiana
I filed for divorce after my wife left me of 21 years. It was finalized in Oct.2003. At the time we had several credit cards, one auto loan, a equity loan, and our house note. We both worked and all these debts were in both our names. I would always give her the money each month to pay our bills. It had always been that way. Right before she left I found out that she had maxed out a $5000 credit card, stop paying on the other two, and was two months behind on our house and equity loan. She agreed in the divorce to pay me $350 per month until her half of these loans were paid in full or about $10,000 (except the house note). She paid me about $1000 and no more. Two months later she filled bankruptcy. She told me that she listed me as one of the creditors and that she didn't have to pay me anymore. I got a letter from her attorney saying that I could not take legal action against her. She has remarried and her new husband owns his own business and is doing very well. She plans on quitting her job because she no longer needs to work$$. I am stuck paying these loans. Advise Please!

[gatorguy3]

If it was not stipulated in verbage in your divorce decree then you have zero legs to stand on. If it was in the decree then you should be able to file for contempt.

Best thing for you, at that point, would be to file bankruptcy yourself.

It sucks...yes, but, that's life.

[cyana24]

Gatorguy is correct. Creditors do not honor any property/debt divisions in divorce decrees. Thank's why when one (ex)spouse declares bk the other often has to as well.

[jw062]

It states in our divorce papers that if she does not pay, then she can be taken back to court. Does her bankruptcy do away with the divorce agreement?

[cyana24]

I think you're pretty much screwed. If she named you as a "creditor" then Bankruptcy (Federal level) trumps Divorce Court (State level). You may have had a chance to file contempt charges per the divorce decree if she had not named you as a creditor. Sounds as if she had a good bankruptcy attorney; her attorney is correct, you cannot take any action towards making her pay another of the debts she has discharged without violating the "automatic stay". You could get in a big trouble if you try to enforce the divorce decree.

That's why I reiterate that when ex-spouse declares bankruptcy the other frequently has to as well.

Sorrry.

[jw062]

I called the bankruptcy court today and they told me that I was not listed as a creditor but as a "co-debtor" who assumed the debts. Ok I understand that, but my divorce papers only say that she is to pay me $$$ per month until "I" have paid off the debts. I was told that this is considered
"a reference to alimony" and it cannot be discharged in a bankruptcy. Also how could an ex-spouse be considered a "creditor"? Also it WAS stipulated in verbage that she was to pay. Signed by her, witnessed, notorized, filed, and signed by the judge. Still no hope?

[cyana24]

"Co-debtor" = "creditor" when you're talking about Joint or Separate Debt (because LA is a community property state).

However, if the wording in your divorce decree contains something like the phrase "payment of this/these (credit) debt(s) is/are considered alimony" or anything like that, then you're correct and it's not dischargeable, because alimony is never dischargeable. You may have a case. I just lack the knowledge of who you can report this to, another bk lawyer or the trustee in her case.

[jw062]

The term "alimony" does not appear anywhere in my divorce papers. It only says that she is to pay monthly until the debts listed where paid in full.
Does this mean I'm back to square one, or do you think I should hire an attorney, or just pay out the #!*%! Bankruptcy is not an option for me.

[cyana24]

If there is no mention of something like the phrase "payment of these debts are to be in lieu of alimony" then I must repeat that there is no action you can take against her. To repeat - any collection activity you attempt will be in violation of the legal discharge of her dischargeable debt. This would be a very serious offense. Sorry. And yes, it stinks, but it happens all the time.