- You cannot discharge obligations of a divorce in Chapter 7 bankruptcies. Chapter 13 bankruptcy regulations allow release of all or a portion of property settlement liabilities.
- Your obligation to pay off certain debts, such as an auto loan, under a property settlement in a divorce can be discharged in a bankruptcy. You may also request release from the liability of cash payments due to your ex-spouse under a settlement.
- Chapter 13 bankruptcies can take a lengthy amount of time to complete. Any property settlement from divorce will not discharge until the bankruptcy proceedings finish. Your costs involved with attempting to discharge a large amount of a property settlement will increase if your ex-spouse attempts to block the move in court.
previous post