QUESTION
How does his bankruptcy default going to affect me?
Asked on Jun 15th, 2015 on Bankruptcy - Michigan
More details to this question:
My ex-husband and I file chapter 13 three years before we got divorced. In the divorce settlement, the payments for the bankruptcy was his responsibility. Today, I was notify that the bankruptcy got dismissed because he was in default.
12 ANSWERS
Deborah F. Bowinski
The dismissal of the case means that you will not get a discharge of your debt without taking some other action. You should have received notices of the motion to dismiss the case for non-payment, and you probably should/could have taken some action at that point. If there is a "hold harmless" clause in your separation agreement you may have grounds to seek an order for contempt in your domestic relations case. If you need debt relief you should consult with a separate bankruptcy lawyer to determine your best options at this point.
Answered on Jun 17th, 2015 at 8:04 PM
Once the case is dismissed, all the creditors will reappear. Not sure of the reasons for doing a Chapter 13 three years ago, but all those remedies will disappear. You may want to speak to your divorce lawyer about a contempt citation. You may also want to evaluate making the payments on the Chapter 13 until you can appear before the divorce judge. You should talk to your Chapter 13 attorney about your options. If you no longer have a BK attorney, you will need to pay a new lawyer his or her regular hourly rate to review the Chapter 13 file with you. For example, I would charge you for one hour of my time, or $285 to review the Chapter 13 file and advise you of all of your Chapter 13 options. You may want to consider converting your portion of the Chapter 13 to a Chapter 7.
Answered on Jun 17th, 2015 at 8:01 PM
Personal Injury Law Attorney serving San Diego, CA
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Law Office of Robert Burns
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Your divorce decree should be clear enough; you didn't show it to me. My guess is that X was required to make any bankruptcy payment but was not required to pursue bankruptcy. You may have liabilities to address in the divorce case that were incompetently assumed to be handled in Bankruptcy Court.
Answered on Jun 17th, 2015 at 7:58 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Contact your attorney and enforce your judgment.
Answered on Jun 17th, 2015 at 7:53 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Your creditors will begin collection activity on your accounts.
Answered on Jun 17th, 2015 at 12:59 PM
When a case is dismissed, it's as if you never filed for bankruptcy. Therefore, look to the divorce decree for the way the assets and debts were to be distributed, and if he is in breach of your agreement, your remedy is a contempt proceeding in family court. The bankruptcy dismissal notice went out to all creditors listed on the case, so it is possible that some might try to collect from you. They are no longer subject to the bankruptcy stay.
Answered on Jun 17th, 2015 at 12:59 PM
Dispute Resolution Attorney serving Seattle, WA
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Law Offices of Helene Ellenbogen P.S.
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Yes, it will. You should have checked that he was paying and could have gone to court to ask the court to compel him to pay. Now you can go to court to compel him to pay the creditors if they come after you. However, you have to act as soon as a credit contacts you and not wait.
Answered on Jun 17th, 2015 at 12:59 PM
Bruce Provda
This is where two courts don't always play well together. In the 13 the Bankruptcy Court expects both parties to the 13 plan to be responsible. The Family Court has let you off the hook, but unfortunately the Bankruptcy Court doesn't care . You need to go to Family Court with a petition against your ex for violating the agreement. Also Sunday speak with your bankruptcy attorney about clearing up the problem there.
Answered on Jun 17th, 2015 at 12:16 PM
Social Security Disability Attorney serving Melbourne, FL
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Law Office of Robert E. McCall
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You need to speak with your bankruptcy attorney.
Answered on Jun 17th, 2015 at 12:00 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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IF his default was the result of failure to pay under the Plan, as you say was his responsibility under the divorce decree, then your remedy would be a contempt action in the divorce case. (There are other kinds of defaults which can lead to a dismissal of a Ch. 13 case.) Unfortunately, a defense to a contempt citation is that the contemn or lacked the ability to comply. (e.g. if he lost his job.) It would be good to get all the facts and consult with your divorce lawyer. Another possibility, but likely a difficult on to carry out, would be a motion to reopen the Ch. 13 case and for you to make the payments. You would probably have to catch up on his missed payments, and the court charges a filing fee for a motion to reopen. OR, you could file a new Ch. 13 just for yourself. (Your lawyer must file a special motion around the tie of starting the case to be sure the Automatic Stay does not expire after 30 days.)
Answered on Jun 17th, 2015 at 11:34 AM
When a bankruptcy is dismissed, the debts go back to square one. While any payment that was made on the debts by the trustee will reduce the amount owed, you may now face additional charges for interest that were avoided by the Chapter 13. A more specific analysis would require a review of the file. Your legal responsibility for payment of this debt is as it was before the Chapter 13 was filed. A divorce decree does not change legal responsibility to any creditor.
Answered on Jun 17th, 2015 at 10:52 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It affects you to the extent that you are no longer protected by the bankruptcy from claims against you in that case.
Answered on Jun 17th, 2015 at 10:38 AM