Legal Question in Credit and Debt Law in Michigan

Civil obligation vs Bankruptcy

In a divorce, my ex agreed to take on all obligations dealing with the home (in the paper work). She has not made any payments on it since then. It is hurting my credit report and I would like to file a writ of garnishment for the payment amount. I expect her to file bankruptcy very soon to get out of her obligation to the creditor. My girlfriend thinks I should wait to see if she files bankruptcy so she doesn't leave me stuck without recourse to retrieve the debt.

Am I able to file a writ of garnishment based on the paperwork in my divorce, and if she files bankruptcy on the debt, is her obligation to me a seperate obligation that I can get after the bankruptcy?


Asked on 2/08/07, 3:05 pm

1 Answer from Attorneys
Francois Nabwangu Wright Cantrell PLLC

Re: Civil obligation vs Bankruptcy

When your ex-spouse files for bankruptcy, all efforts to collect any debts have to stop unless they fit within one of the exceptions in the bankruptcy statute. This is known as the "automatic stay."

As to Bankruptcy and Property Settlements the new bankruptcy law made non-support obligations from a divorce or separation non-dischargeable in a chapter 7 bankruptcy if the discharge of the obligation would harm the spouse to whom the obligation is owed more than it would harm the person who owes it, your ex-spouse. 11 U.S.C. 523(a)(15). A debt that is non-dischargeable means that your ex-spouse is still responsible for it.

Why wait for bankruptcy filing? otherwise you would have to file a complaint in bankruptcy court to get the property settlement debt excepted from discharge. If you didnt at that time, the debt may be wiped out and you wont be able to collect it later. Hence the point of bankruptcy?

Francois M. Nabwangu, Esq.

http://fnabwangu.googlepages.com

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Answered on 2/08/07, 10:09 pm


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