Will bankruptcy take care of a property settlement from a divorce?
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Will bankruptcy take care of a property settlement from a divorce?
Asked on March 6, 2013 under Bankruptcy Law, Colorado
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
In a Chapter 7 case, a divorce property settlement cannot be discharged (even though such an obligation may be part of property and not a family support payment).
In a Chapter 13 case, some districts will allow an ex-spouse to discharge an obligation that was a property settlement. So if a filing lives in one of these districts, they would be able to file for bankruptcy and their obligation to pay a property settlement would be treated as an unsecured, non-priority debt. In other words, it woud be dischargeable.
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