When filing for Divorce, What Debts are Discharged in Chapter 7 and Chapter 13?

In this article, you will learn debts that are discharged in these bankruptcy protection plans when filing a divorce.

1. Attorney Fees

Attorney fees incurred during a divorce case can be discharged in Bankruptcy.

2. Non-Divorce Related Debts

Chapter 13 allows you to discharge certain non-support related divorce debts. For instance, debts that relate to the division of property can be discharged under the protection plan. Other types of non-support related debts that can be discharged include the following.

  • Debts incurred for the malicious and willful destruction of property that does not result in personal injury
  • Debts incurred due to divorce proceedings
  • Debts incurred due to the payment of non-dischargeable tax obligation
  • Retirement account loans
  • Certain fines owed to the government
  • Homeowner association fees after the filing date

The above debts can be discharged under the Chapter 13 protection plan as ‘general unsecured debt’. However, these debts cannot be discharged in case of a Chapter 7 bankruptcy. In addition, you should note that support-related debts such as alimony, child support payments, can be paid over a period of time in Chapter 13 but not in Chapter 7.

3. Joint Marital Debts

Joint marital debts can be discharged in Chapter 7 and Chapter 13 bankruptcy case after a divorce. But the divorce decree should contain the language that the partner will hold harmless or indemnify the other party to a joint debt. If no such provision is made in the divorce settlement, the other partner who has not filed for a bankruptcy protection plan will still be liable.

Summing it Up

Chapter 13 bankruptcy option plan helps more in easing the personal and divorce debt burden. Under this protection plan, you can also stop your partner from putting a lien on your home for payment of non-support financial obligations. In this way, you will be able to make payments on your home loan. These obligations are not discharged in a chapter 7

To understand the best option for bankruptcy protection when filing a divorce, you should speak to an experienced bankruptcy attorney.

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Attorney Eli Tamkin is a Cleveland bankruptcy lawyer.  He has been practicing law since 1989 and in Cleveland Ohio since 1994. Since then, he has dealt with a variety of legal issues, including bankruptcy, real estate, divorce, personal injury, and probate. Many times, answering questions on bankruptcy draws on knowledge of other legal areas as well. His experience in these other areas, as well as in bankruptcy enables him to address your particular needs and to offer you advice that is applicable to your situation.

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