Legal Question in Bankruptcy in Wisconsin
Chpt. 7 Bankruptcy Discharge and WI Divorce Law
does a Chpt. 7 Bankruptcy Discharge
trump a WI Divorce law settlement?
I was discharged from our 2nd
mortgage and my car lease after my
divorce was final and now my ex is
coming after me for the money.
1 Answer from Attorneys
Chapter 7 Bankruptcy Discharge of Debts in Violation of WI Divorce Order
Generally speaking, obligations stemming from any family court order were made nondischargeable by the 2005 bankruptcy reforms nationwide, at least insofar as the debts adversely effect the opposing spouse. There are exceptions, which require a bankruptcy judge's decision, depending upon who can best bear the debt. I would not be able to advise you unless I first represented you, but suffice it to say that there is not a quick or easy answer to this question, depending upon the relative financial positions of the parties. Ironically, the ruling might sometimes be that the more impoverished party can better bear the debt due to being judgment proof (i.e. having insufficient wages to allow garnishment and no property worth seizing).In other words, this is fact intensive litigation, the results of which vary case by case. You (or your divorce lawyer) should therefore consult with an experienced bankruptcy lawyer in order to get an answer upon which you should rely, as soon as possible. It might still be possible under some circumstances to go back to bankruptcy court for relief.
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