How does his bankruptcy default going to affect me? 18 Answers as of June 19, 2015

My ex-husband and I file chapter 13 three years before we got divorced. In the divorce settlement, the payments for the bankruptcy was his responsibility. Today, I was notify that the bankruptcy got dismissed because he was in default.

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Stephens Gourley & Bywater | David A. Stephens
You will not get a discharge because the case was dismissed which means you owed the debts still.
Answer Applies to: Nevada
Replied: 6/19/2015
S. Joseph Schramm | Joseph Schramm
If, as part of a marital property settlement agreement, your former spouse was to make the payments to the Ch. 13 plan and failed to do so, you might be able to seek reimbursement through the Family Division for breach of the agreement. The relief would be limited to any money you would have to pay as a result of the breach.
Answer Applies to: Pennsylvania
Replied: 6/18/2015
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
Contact your attorney and enforce your judgment.
Answer Applies to: Michigan
Replied: 6/17/2015
Law Offices of Robert Burns
Law Offices of Robert Burns | Robert Burns
Your divorce decree should be clear enough; you didn't show it to me. My guess is that X was required to make any bankruptcy payment but was not required to pursue bankruptcy. You may have liabilities to address in the divorce case that were incompetently assumed to be handled in Bankruptcy Court.
Answer Applies to: California
Replied: 6/17/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Once the case is dismissed, all the creditors will reappear. Not sure of the reasons for doing a Chapter 13 three years ago, but all those remedies will disappear. You may want to speak to your divorce lawyer about a contempt citation. You may also want to evaluate making the payments on the Chapter 13 until you can appear before the divorce judge. You should talk to your Chapter 13 attorney about your options. If you no longer have a BK attorney, you will need to pay a new lawyer his or her regular hourly rate to review the Chapter 13 file with you. For example, I would charge you for one hour of my time, or $285 to review the Chapter 13 file and advise you of all of your Chapter 13 options. You may want to consider converting your portion of the Chapter 13 to a Chapter 7.
Answer Applies to: Colorado
Replied: 6/17/2015
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    The dismissal of the case means that you will not get a discharge of your debt without taking some other action. You should have received notices of the motion to dismiss the case for non-payment, and you probably should/could have taken some action at that point. If there is a "hold harmless" clause in your separation agreement you may have grounds to seek an order for contempt in your domestic relations case. If you need debt relief you should consult with a separate bankruptcy lawyer to determine your best options at this point.
    Answer Applies to: Colorado
    Replied: 6/17/2015
    Law Offices of Helene Ellenbogen, P.S.H | Helene Ellenbogen
    Yes, it will. You should have checked that he was paying and could have gone to court to ask the court to compel him to pay. Now you can go to court to compel him to pay the creditors if they come after you. However, you have to act as soon as a credit contacts you and not wait.
    Answer Applies to: Washington
    Replied: 6/17/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Your creditors will begin collection activity on your accounts.
    Answer Applies to: Ohio
    Replied: 6/17/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    When a case is dismissed, it's as if you never filed for bankruptcy. Therefore, look to the divorce decree for the way the assets and debts were to be distributed, and if he is in breach of your agreement, your remedy is a contempt proceeding in family court. The bankruptcy dismissal notice went out to all creditors listed on the case, so it is possible that some might try to collect from you. They are no longer subject to the bankruptcy stay.
    Answer Applies to: Oregon
    Replied: 6/17/2015
    Provda Law Firm
    Provda Law Firm | Bruce Provda
    This is where two courts don't always play well together. In the 13 the Bankruptcy Court expects both parties to the 13 plan to be responsible. The Family Court has let you off the hook, but unfortunately the Bankruptcy Court doesn't care . You need to go to Family Court with a petition against your ex for violating the agreement. Also Sunday speak with your bankruptcy attorney about clearing up the problem there.
    Answer Applies to: New York
    Replied: 6/17/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It affects you because all that debt comes back. If you are the obligor or joint obligor the creditors can come after you.
    Answer Applies to: California
    Replied: 6/17/2015
    Law Office of Robert E McCall | Robert McCall
    You need to speak with your bankruptcy attorney.
    Answer Applies to: Florida
    Replied: 6/17/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    IF his default was the result of failure to pay under the Plan, as you say was his responsibility under the divorce decree, then your remedy would be a contempt action in the divorce case. (There are other kinds of defaults which can lead to a dismissal of a Ch. 13 case.) Unfortunately, a defense to a contempt citation is that the contemn or lacked the ability to comply. (e.g. if he lost his job.) It would be good to get all the facts and consult with your divorce lawyer. Another possibility, but likely a difficult on to carry out, would be a motion to reopen the Ch. 13 case and for you to make the payments. You would probably have to catch up on his missed payments, and the court charges a filing fee for a motion to reopen. OR, you could file a new Ch. 13 just for yourself. (Your lawyer must file a special motion around the tie of starting the case to be sure the Automatic Stay does not expire after 30 days.)
    Answer Applies to: Wisconsin
    Replied: 6/17/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    When a bankruptcy is dismissed, the debts go back to square one. While any payment that was made on the debts by the trustee will reduce the amount owed, you may now face additional charges for interest that were avoided by the Chapter 13. A more specific analysis would require a review of the file. Your legal responsibility for payment of this debt is as it was before the Chapter 13 was filed. A divorce decree does not change legal responsibility to any creditor.
    Answer Applies to: Nevada
    Replied: 6/17/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You would have to take him back into court for violating the settlement agreement.
    Answer Applies to: New York
    Replied: 6/17/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    It affects you to the extent that you are no longer protected by the bankruptcy from claims against you in that case.
    Answer Applies to: Michigan
    Replied: 6/17/2015
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    If the bankruptcy was dismissed, it no longer protects you. If you were paying for a house or a car or truck in the bankruptcy, the house could be foreclosed upon or you could have your vehicle or vehicles repossessed. You should consult with an experienced bankruptcy lawyer right away. You should consult your divorce lawyer about any remedies you may have against your ex-spouse for not paying the plan payments. Generally speaking if one spouse is ordered to pay debt in a divorce and doesn't, and the other spouse has to pay it, the spouse that paid it can try to recover the money that they had to pay, from the spouse that was ordered to pay it. But if they cannot afford to pay it, you may just be out of luck.
    Answer Applies to: Texas
    Replied: 6/17/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    Any creditors that were not paid in the bankruptcy now can come after both of you for collections. You need to seek the help of a divorce attorney to discuss your options regarding his default on the agreement.
    Answer Applies to: Virginia
    Replied: 6/17/2015
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