co-debtor required to be notified of proceedings?

[mitgr5200@yahoo]

What is the name of your state? Michigan

ex-spouse filed bankruptcy after divorce. There were bank fees aquired during the marriage. She filed filed bankruptcy and discharged the debt for herself. I know that I am still liable, but wasn't she supposes to either notify me about the proceedings? Or should she have included me in the info to the court and the court notify me? any recourse now that it is over and I owe the debt by myself?

 

[Ladynred]

but wasn't she supposes to either notify me about the proceedings?

Not if she didn't include you as a creditor. There is a place on the forms to list co-debtors, but they don't get notified of the proceedings by being listed.

Once the debt is discharged for her, you're on the hook and there's really nothing you can do about it.

 

[AttorneyOney]

Conventional wisdom amongst bankruptcy attorneys is that the non-debtor ex-spouse should be listed as a creditor if any joint debts were assumed by the debtor spouse in the divorce agreement. The claim to be listed is a contingent, unliquidated claim arising from subrogation if and when the non-debtor spouse pays the debt.

Without notice, 523(a)(3) applies instead of 523(c)(1), which means that any 523(a)(15) dischargeability issues remain alive. That is, if the non-debtor never gets notice in time to file an adversary proceeding before the bar date [see B.R. 4007(c)], then these debts don't get discharged. (The new law will change this, by the way. For cases filed starting 180 days after the new law takes effect, alimony, child support AND property settlement debts will all be nondischargeable, period.)

Claims arising from the property settlement, if they are ruled non-dischargeable, must be satisfied from non-exempt or post-petition property. Alimony and child support claims are not dischargeable under current law and can be satisfied even from property that was exempt in the bankruptcy -- this is what section 522(c)(1) is all about.