Legal Question in Bankruptcy in Indiana

bankruptcy---divorce

currently going through a divorce. Fianl papers are now being written up. On debt that is being split up between wife and husband---can either party file bankruptcy after the final papers have been signed by the judge for their portion of the debt. If so, can the other party come back and sue the person that filed for the balance.example--change card bill-split even debt--wife files bankruptcy including this charge card--can he or the company come back and try and collect for this debt.


Asked on 11/15/02, 8:08 am

2 Answers from Attorneys
John Cook Dunn & Cook

Re: bankruptcy---divorce

What you are asking for happens a lot. In many cases, one of the spouses will file bankruptcy after the divorce is final, which will cause the other spouse to then file as the creditors will come after the one who did not file. Unless the debt can somehow be construed as child support, or the discharge of the debt will present a considerable hardship on the other spouse, the debt will be discharged.

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Answered on 11/15/02, 1:20 pm
John Bator Bator Redman & Shive

Re: bankruptcy---divorce

The non bankruptcy filing spouse can object to the discharge of the joint debt if the filing spouse was ordered to pay in the dissolution decree AND the Court determenies that the discharge by the filing spouse imposes an undue hardship on the non-filing spouse who would be required to pay the debt. In addition, if the decree characterizes the debt as part of the filing spouses child support, that debt is non-dischargeable in bankruptcy. Often it is advisable for the couple to file a joint bankruptcy prior to the finalization of the dissolution. Consult experienced bankruptcy counsel, since the time limits for objections are extremely short.

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Answered on 11/15/02, 2:17 pm


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