11 USC 523(a)(15) Marital Property Exemption

[randolph76]

What is the name of your state (only U.S. law)? Illinois

I am in the process of filing Ch 7 Bankruptcy. In the divorce, I was awarded the house but was supposed to give her the equity in the house ($10,000) when i sold it or 10 years later. Well, subsequent to that she contested our joint custody and lawyer bills, etc. caused me to fall behind and file for bankruptcy (ch 7). Now my lawyer says that the $10,000 can't be discharged due to the 2005 law unless she doesn't dispute that it should be discharged. The lawyer also said that the bankruptcy won't count as a sale so I'd be off the hook to pay up immediately.

What I'm wondering if there's any way out of this. If I had $10,000, I wouldn't be filing bankruptcy. And, that figure is based on equity in 2008 and we all no that that no longer exists. It's like the marital property vanished into thin air due to housing markets. Is there any argument I could make that could fight this not being discharged? I know I should have gotten divorced pre-2005 right Is there any case law dealing with the 2005 change to 11 USC 523(a)(15)(A) and (B)? or something else that may be helpful.

And if there is absolutely nothing that can be done how do I pay this? I doubt I could save $10,000 by June 1, 2018.

Below, I've quoted the relevant sections of the Marital Settlement Agreement:

Article V: Maintenance
5.1 In consideration of the various promises, agreements and conditions contained in this Agreement, DEBTOR hereby waives any and all rights he may have to receive maintenance from EXSPOUSE, past, present and future, pursuant to the laws of the State of Illinois or of any other state or country. DEBTOR acknowledges that this waiver forever bars him from asserting a claim for maintenance against EXSPOUSE.

5.2 In consideration of the various promises, agreements and conditions contained in this Agreement, EXSPOUSE hereby waives any and all rights she may have to receive maintenance from DEBTOR past, present and future, pursant to the laws of the State of Illinois or of any other state or country. EXSPOUSE acknowledges that this waiver forever bars her from asserting a claim for maintenance against DEBTOR.

Article VII: PROPERTY
7.5 DEBTOR is awarded the marital residence located at 123 Anywhere St, Collinsville, Illinois, held in parties' joint names. DEBTOR shall refinance the indebtedness secured by the residence or shall take any other steps necessary to remove EXPOUSE's name therefrom. EXSPOUSE shall execute any documents necessary to transfer her interest in the residence within seven (7) days of being provided with documentation and confirmation that DEBTOR has refinanced the indebtedness secured by the residences and/or removed EXSPOUSE's name from therefrom, whichever is later.

7.6 As and for a further distribution of marital property, DEBTOR shall pay to EXSPOUSE the sum of $10,000.00 within seven (7) days of the closing sale of the residence awarded to DEBTOR in Paragraph 7.3 [sic. paragraph 7.3 deals with money market accounts] herein, or June 1, 2018, whichever is earlier.