October 4, 2016 By:
This is a confusing area of bankruptcy law because there have been many significant changes over the years. So some things that you may be hearing may have been true once, but have changed.
To be clear:
The “non-support” obligations which can be discharged under Chapter 13 are those dealing with “property settlement.” These tend to be one of two kinds:
Support debts are defined as debts “in the nature of alimony, maintenance, or support . . . without regard to whether such debt is expressly so designated.” Section 101(14A) of the Bankruptcy Code. In other words, your divorce decree may notsome obligation as “support” but the bankruptcy court can still determine that it is “in the nature of support.”
For example if you were ordered in the decree to pay half of your ex-spouse monthly rent and health insurance premiums for five years, and there was no mention of any spousal support payments when normally they would have been, the rent/health insurance obligation may well be considered by the bankruptcy court to be “in the nature of support.”
If you have financial obligations from your divorce or separation decree OTHER than to pay child or spousal support, those obligations may be dischargeable under Chapter 13. So if you have a substantial amount of such non-support debt, you should look into filing under Chapter 13 instead of Chapter 7.
And if you are in the Dallas-Fort Worth Metroplex, let me help you through this thorny intersection of divorce and bankruptcy law. I’m Carrie Weir, a highly experienced Texas bankruptcy lawyer serving the areas around Rockwall, Heath, Greenville, Lavon, Wylie, Mesquite, Royse City, Sachse, and Rowlett. Please contact me for a free and confidential consultation. Please either just call me at 972-772-3083 or use the contact form here.
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