CAN I DISCHARGE DEBTS TO A FORMER SPOUSE IN BANKRUPTCY?
Certain debts to a spouse or former spouse may be discharged in a bankruptcy. However, the rules are quite complicated and you should carefully discuss the debts with a knowledgeable attorney.
Certain debts to a spouse or former spouse cannot be discharged in bankruptcy under the recent bankruptcy changes. These include debts closely related to the support or maintenance of a spouse or children, including child support and spousal maintenance.
Other debts, usually debts to even out or equalize a property division in a divorce, may be dischargeable, but only in a Chapter 13 Bankruptcy.
Occasionally these distinctions can be significantly blurred. If payments to a former spouse are not clearly designated as either maintenance or equalization of property, the fight avoided in the divorce case may re-erupt in a non-dischargeability action in the subsequently filed bankruptcy case.
To speak with an attorney about your divorce or bankruptcy questions, please contact McGuire Gardner today.
For more information, or to register for one of our free bankruptcy seminars, please visit www.mcguiregardner.com or www.freearizonabankruptcyseminar.com.