Full question:
I am looking to file Chapter 7 bankruptcy protection (pro se because I cannot afford an attorney). Am Recently divorced (ex-spouse resides in SC, I reside in NY), I am current with alimony/child support obligations, but have incurred one joint debt of $8 k as part of our divorce settlement. I have no assets (e.g. cash, house, stocks, rental property etc.)and did pass the Ch. 7 means test. My question is, according to 11 U.S.C.523(a)(15), one cannot discharge property settlement agreements, but can I include the joint debt in my Chapter 7 petition on Schedule F anyhow? Decree states, 'Defendant will be responsible for payment or any other joint accounts', but does not list the specific debt/account or repercussions if payments not made. If I do, then do I need to include ex-spouse on Schedule F too or is Schedule H sufficient as co-debtor? I am okay with letting ex-spouse know I am filling bankruptcy. Will the trustee remove the joint debt and only discharge the non-joint accounts? Or does it make more sense to file Chapter 13, which I am opposed because I do not want to be controlled by the courts for the next 3-5 years paying back.
- Category: Bankruptcy
- Date:
- State: New York
Answer:
Under 11 U.S.C. § 523(a)(15), debts from a divorce or separation are generally not dischargeable in Chapter 7 bankruptcy. This includes property settlement agreements. However, you can still list the joint debt on Schedule F of your Chapter 7 petition. The decree states that you are responsible for joint accounts, but it does not specifically identify the debt or outline consequences for non-payment.
If you include the joint debt in your petition, you should also list your ex-spouse on Schedule H as a co-debtor. This informs the court about the shared liability. The bankruptcy trustee will review your debts, but they may not remove the joint debt simply because you filed for bankruptcy. Instead, your non-joint debts may be discharged, while the joint debt remains your responsibility.
Filing for Chapter 13 is an option, but since you prefer not to be under court supervision for three to five years, Chapter 7 may be more suitable for your situation. However, it’s advisable to consult a local bankruptcy attorney for tailored guidance.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.