Will bankruptcy take care of a property settlement from a divorce?

Asked on March 6, 2013 under Bankruptcy Law, Colorado

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

In a Chapter 7 case, a divorce property settlement cannot be discharged (even though such an obligation may be part of property and not a family support payment).

In a Chapter 13 case, some districts will allow an ex-spouse to discharge an obligation that was a property settlement. So if a filing lives in one of these districts, they would be able to file for bankruptcy and their obligation to pay a property settlement would be treated as an unsecured, non-priority debt. In other words, it woud be dischargeable.


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