Legal Question in Bankruptcy in Georgia

I have been found in Contempt for not paying the third and fourth payment of my Divorce Order yesterday. If I don't make a payment within 30 days, I'll be incarcerated. The Judge will sign the Contempt Order next week as soon as Plaintiffs council prepares a revised parenting plan.

The original Divorce Property Settlement is 25,000 to be paid over 5 years at 5000 per year. It is listed as a Property Settlement in the decree. In return my wife was required to deed house property back to me within 10 days of the divorce order so that I could sell it.

I made the first 2 annual payments but could no longer afford it because my ex refused to give the deed back for 13 months. Property valued declined drastically during this time and I lost the property. My mother loaned me and my wife the money through a signed loan agreement of 210,000. The property is now worth 98,000. I had to deed property to my Mother because I could not afford it. I am now required to pay 1500 every 30 days plus Plaintiffs legal fees.

This is an impossible payment schedule that I will not be able to handle. Can I file chapter 7 in this situation? I passed the means test and I want to avoid incarceration. The contempt order will not be signed until next week. Do I need to file before the contempt order is signed by the Judge?


Asked on 10/18/12, 12:10 pm

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

As a general rule, most divorce settlements are non-dischargeable in bankruptcy. Even if some of yours is, other parts (example: attorneys fees) are generally not.

The person you need to be asking this to is your attorney. You're about to go to jail! You face financial ruin! It would be unthinkable that you'd go to court without counsel, and you will not find help online in this situation. The dischargeability of marital obligations in bankruptcy is highly technical. Do things wrong, and instead of helping yourself, you may anger a judge and lengthen your incareceration.

Calling something a property settlement in the divorce MAY help you in bankruptcy, but the bankruptcy court is not bound by the words that are used. Additionally, acts like deeding a home to your mother are likely to be deemed fraudulent or prefential transfers in a bankruptcy that may pull your mother into your mess.

Bankruptcy is far more complex than a means test. You needed a lawyer yesterday. Get one and follow his advice.

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Answered on 10/18/12, 12:19 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

If you need to file anyway, you should see a BR lawyer in your area. However, you will find that, at best, it might delay the inevitable. On the other hand, you might find yourself in more hot water with the judge in the divorce case if you try to stall it and a Bankruptcy case normally won't stop the proceeding. Domestic support obligations are nondischargeable and take priority over almost anyone else in a bankruptcy case. If you need to get out of other debt to pay the ex, it is something to consider, but you won't get out of the debt to the ex. See a lawyer to review the entire case.

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Answered on 10/18/12, 12:23 pm


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