QUESTION

My ex-husband is filing bankruptcy, in my decree he is to pay half the student loan because i gave him the house will he still be held responsible?

Asked on Nov 23rd, 2015 on Bankruptcy - Virginia
More details to this question:
I want to make sure he is still held accountable. I have already signed over the house to him.
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1 ANSWER

Unfortunately, your question cannot be answered without additional information. The answer depends, in part, on whether your ex-husband is filing a Chapter 7 or Chapter 13. Additionally, the language of the property settlement agreement is also very important. The question really turns on whether the obligation that you have described is determined to be a domestic support obligation. In the bankruptcy context, the term “domestic support obligation” means a debt that accrues before the date the bankruptcy is filed that is (A) owed to or recoverable by a former spouse; (B) in the nature of alimony, maintenance, or support of the former spouse; or (C) established before the date the bankruptcy is filed by reason of applicable provisions of (i) a separation agreement, divorce decree, or property settlement agreement; or (ii) a court order. Section 523(a)(5) and (15) of the Bankruptcy Code precludes domestic support obligations and certain obligations created in a property settlement agreement or divorce decree from being discharged in a Chapter 7. On the other hand, debts created by a property settlement agreement or divorce decree that are not in the nature of support, can be discharged in Chapter 13. The Chapter 13 plan and the amount of the other unsecured debt will determine the amount of the obligation paid to the former spouse. You want to make sure that you retain a bankruptcy attorney to monitor your ex-husband's bankruptcy case and take appropriate action is necessary.
Answered on Nov 24th, 2015 at 7:04 PM

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