Every so often, one of my divorced clients has an ex-spouse who has filed for personal bankruptcy.  One of the matters they are concerned about is whether or not their ex-spouse’s bankruptcy case will eliminate obligations that were decreed in a divorce order.

The Bankruptcy Code, as it stands now, does not allow for the discharge of most divorce or domestic relations type of debt.  In particular, Bankruptcy Code Section 523(a)(5) declares that a “domestic support obligation” is non-dischargeable. According to Bankruptcy Code Section 523(a)(15), any debt to your former spouse or your child that you have incurred during a divorce or separation or connected to your separation agreement, divorce decree, or any other order of a court is non-dischargeable.

Generally, bankruptcy judges avoid getting involved in child support, alimony or property division disputes. In most cases, a bankruptcy debtor cannot eliminate this type of debt via bankruptcy.

There are some instances, however, that are not so straightforward. For example, if you and your spouse have accrued joint credit card debt and your ex-spouse files bankruptcy, you may receive a letter from the credit card company demanding payment on the outstanding balance. If the credit card debt was not mentioned in your divorce settlement, you could have a problem.

Also be aware that there have been cases in which a Chapter 13 bankruptcy is used to address delinquent child support by including the payment of back child support over time in the payment plan.

If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions, please contact me.  

Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form