What to do if I was just awarded a judgement against my now ex-husband but won’t be able to collect because he is filing for bankruptcy?
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What to do if I was just awarded a judgement against my now ex-husband but won’t be able to collect because he is filing for bankruptcy?
It is a significant amount of money. After the judge awarded it to me, my husband laughed and said that I would not see a dime and that he will just file bankruptcy. The money he owes me is for debt that is still owed to creditors. Do I have any recourse? The debt still has to be paid but now it seems as though I will have to pay it myself.
Asked on October 4, 2013 under Bankruptcy Law, Colorado
Answers:
Terence Fenelon / Law Offices of Terence Fenelon
Answered 10 years ago | Contributor
You don't provide enough detail for a response to your question. How was the judgment awarded to you? Was it as a result of a marital settlement agreement? A failure to pay a past support obligation? A debt payable in the nature of support? A default based upon a prior indemnification agreement?
Most debts, attributable to a divorce decree or marital settlement agreement or Judgment cannot be discharged in bankruptcy under 11 USC 523(a)(5). However, depending upon the nature of the debt, and timing, there are exceptions.
I would advise that you attempt to collect the debt and let the spouse file. Consult with a capable family law/bankruptcy attorney (they do exist) and explore your options. Don't give into the bluff. Good luck.
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