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Bankruptcy and divorce settlement

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faw11

Junior Member
What is the name of your state (only U.S. law)?
My ex is filing chapter 13.Can my ex discharge the court ordered settlement that is due me. I am very well off financially, do not need any money.My lawyer was good, my exs was terrible.My ex was ordered to pay me six digits, but will have to sell our house to pay me.My ex still lives in the house and will be left homeless and broke when the house sells, but I will get my court ordered settlement.Some friends say the new 2005 bankruptcy law will let my ex discharge the debt others say the debt can not be discharged.Who is right?
 


bigun

Senior Member
Actually, the bk law change in 05 made setlements that are part of a divorce decree a priority debt and it can't be discharged.

11 U.S.C. 507

(a) The following expenses and claims have priority in the following order:

(1) First:

(A) Allowed unsecured claims for domestic support obligations that, as of the date of the filing of the petition in a case under this title, are owed to or recoverable by a spouse, former spouse, or child of the debtor, or such child's parent, legal guardian, or responsible relative, without regard to whether the claim is filed by such person or is filed by a governmental unit on behalf of such person, on the condition that funds received under this paragraph by a governmental unit under this title after the date of the filing of the petition shall be applied and distributed in accordance with applicable nonbankruptcy law.

(B) Subject to claims under subparagraph (A), allowed unsecured claims for domestic support obligations that, as of the date of the filing of the petition, are assigned by a spouse, former spouse, child of the debtor, or such child's parent, legal guardian, or responsible relative to a governmental unit (unless such obligation is assigned voluntarily by the spouse, former spouse, child, parent, legal guardian, or responsible relative of the child for the purpose of collecting the debt) or are owed directly to or recoverable by a governmental unit under applicable nonbankruptcy law, on the condition that funds received under this paragraph by a governmental unit under this title after the date of the filing of the petition be applied and distributed in accordance with applicable nonbankruptcy law.
 

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