Sunday, August 23, 2009

Dischargeable divorce obligations: important chapter choice

Choice of Chapter (7 or 13) can be critical to whether a debt is dischargeable.

If the bankruptcy is a chapter 7, the obligation to the ex wife is likely non dischargable. See 11 USC 523(a)(15). If the bankruptcy is a chapter 13, the obligation to the ex wife is dischargable.

Have your counsel choose your bankruptcy chapter wisely.

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