Chapter 13 bankruptcy can discharge non support obligations associated with a divorce that are non-dischargeable in Chapter 7. That’s worth repeating: any marital settlement agreement or court judgment that calls for payment or indemnity by one spouse to the other in the future is potentially vulnerable to a subsequent bankruptcy filing by the obligor-spouse. While […]
The Complex World Of Interspousal Claims In Bankruptcy
Traps and grey areas abound when one spouse files bankruptcy during or after a divorce. Inattention by the non-filing spouse can result in the bankruptcy discharge of spousal claims that might actually be nondischargeable. One of those traps involves the differing treatment in bankruptcy of debts to a former spouse incurred in the course of […]
Lien Avoidance In Bankruptcy: The Questions You Need To Answer
Black letter law says liens pass through bankruptcy unchanged. But the better statement adds a single word: unless. Liens survive bankruptcy intact unless….unless you take some action to void them. One tool to void liens lives in ยง522(f). Its location in Chapter 5 tells you that it’s available to any individual debtor who is entitled […]
Between the 1st and the 15th: Is Mortgage Current?
The no man’s land between the mortgage due date and late payment is a persistent trouble spot for Chapter 13 practitioners: Are there arrears when the case is filed during the grace period and the payment made before it was late? In Borre, Judge Ronald Sargis of ED CA said no. He held that the […]
