Q: My marital settlement agreement/divorce judgment requires my ex-spouse to pay certain debts incurred during the marriage. Can he avoid liability for these debts by filing bankruptcy and will I become liable for these debts?
A: Obligations assumed in a divorce are not dischargeable under Chapter 7. Therefore the debtor cannot avoid liability for these debts. These debts, however, may be discharged under Chapter 13 if the debtor complies with the payment plan and has paid all support obligations in full. Therefore, you may become liable for these debts despite the marital settlement agreement and the divorce.
Q: My marital settlement agreement/divorce judgment requires my ex-spouse to make payments to me as part of the property distribution. How will these payments be affected if he files for bankruptcy?
A: These obligations are treated the same as the assumption of debts in a divorce. Under Chapter 7, your former spouse cannot avoid these obligations, but may be able to avoid the obligations under Chapter 13 bankruptcy.
