Defendant Held Harmless Question

[JGlover314]

Approximately a year ago I was divorced and during the time between the separation and the final divorce decree we were both served with a collections suit against us for a medical bill. In the final divorce decree she asked for and was granted to be found harmless in the case and it is recorded in the divorce decree. A few months later, I filed for Chapter 7 and was discharged of all debts. After I filed for bankruptcy protection, the plaintiff dropped me from the collection request (as I was protected through bankruptcy) and now she has the judgement against her (who has a legal court signed document holding her harmless) for a some of approximately $2675.

Question 1: Will she be able to not pay by providing the divorce degree making her harmless prior to the judgement granted a full year prior to the collections judgment by the court?
Question 2: If she is not protected by the harmless clause, will she be able to sue, garnish, etc me for the total sum plus her court costs? (even though I have been discharged for the debt)

Thank you for any help on this.

 

[Zigner]

Approximately a year ago I was divorced and during the time between the separation and the final divorce decree we were both served with a collections suit against us for a medical bill. In the final divorce decree she asked for and was granted to be found harmless in the case and it is recorded in the divorce decree. A few months later, I filed for Chapter 7 and was discharged of all debts. After I filed for bankruptcy protection, the plaintiff dropped me from the collection request (as I was protected through bankruptcy) and now she has the judgement against her (who has a legal court signed document holding her harmless) for a some of approximately $2675.

Question 1: Will she be able to not pay by providing the divorce degree making her harmless prior to the judgement granted a full year prior to the collections judgment by the court?
Question 2: If she is not protected by the harmless clause, will she be able to sue, garnish, etc me for the total sum plus her court costs? (even though I have been discharged for the debt)

Thank you for any help on this.

The creditor is not a party to your divorce. She owes the creditor the money. You *may* owe her the money, but that's a better question for someone more versed in bankruptcy law.

 

[LdiJ]

The creditor is not a party to your divorce. She owes the creditor the money. You *may* owe her the money, but that's a better question for someone more versed in bankruptcy law.

I agree with this but I will say that you can be held in contempt and fined by the court even if you are not obligated to pay her the money under bankruptcy law.

 

[latigo]

Approximately a year ago I was divorced and during the time between the separation and the final divorce decree we were both served with a collections suit against us for a medical bill. In the final divorce decree she asked for and was granted to be found harmless in the case and it is recorded in the divorce decree. A few months later, I filed for Chapter 7 and was discharged of all debts. After I filed for bankruptcy protection, the plaintiff dropped me from the collection request (as I was protected through bankruptcy) and now she has the judgement against her (who has a legal court signed document holding her harmless) for a some of approximately $2675.

Question 1: Will she be able to not pay by providing the divorce degree making her harmless prior to the judgement granted a full year prior to the collections judgment by the court?
Question 2: If she is not protected by the harmless clause, will she be able to sue, garnish, etc me for the total sum plus her court costs? (even though I have been discharged for the debt)

Thank you for any help on this.

As Zigner has noted nothing contained in the divorce decree is of any consequences to third parties including the order that you assume the medical ill and to indemnify and hold your spouse harmless of any liability for that debt.

Accordingly, the answer to your question as to whether she can escape payment for that debt because of the hold harmless language is that she cannot. In that regard whatever liability existed at the time of the divorce continues unabated

More complicated is the question of your continued liability under the hold harmless in view of your Chapter 7 filing and discharge.

In other words, did your bankruptcy relieve you of the responsibility to indemnity her from the medical bill. And that answer is no, it did not.

The bottom line so to speak is that you could not successfully plead your discharge in bankruptcy as a defense to any legal action on her party brought against you to enforce the hold harmless language in the decree.

To explain: When you were ordered to indemnify and hold her harmless of the medical bill it created a new obligation separate and independent of the debt to the original creditor. And this newly created and separate IS NOT dischargeable in a Chapter 7 bankruptcy. Why?

Because of Section 523 (a)(15) of the Bankruptcy Code which essentially exempts from a discharge in a Chapter 7 those (non support) obligations to a former spouse arising out of a property settlement agreement or divorce decree

(If you have questions or are interested in reading some case law and a treatise on the subject, please advise.)

 

[adjusterjack]

(who has a legal court signed document holding her harmless) for a some of approximately $2675.

It's amusing how you emphasize that document.

What you don't understand is that it is YOU that agreed to hold her harmless and your obligation to do so was not discharged by your bankruptcy.

I suggest you come up with the money quickly, before things get a lot worse.