The relationship is over, but there are still lingering issues that hold you together. Perhaps it’s child support, health care, property distribution or other matters. If your ex files bankruptcy, it is very important you understand your rights and your responsibilities – as well as your options.
While you might have the status as the “ex”, for bankruptcy purposes, you are a creditor. This means that once the petition is filed, the automatic stay applies to you. Don’t call the ex asking for payment of prepetition support or payments – that’s a violation of the stay. Don’t call the ex and start yelling expletives – that’s a violation of the stay. You may need to obtain relief from the automatic stay, which requires a motion – and it requires a filing fee (and it may require a hearing).
Do speak with a bankruptcy attorney immediately. Bankruptcy proceedings are time sensitive. Deadlines are deadlines. You also may have some rights you might want to enforce. Does the ex’s disclosures in the divorce matter match the financial disclosures in the family court matter? Is there an advantage to thwarting the ex’s efforts in getting bankruptcy relief, you might doing so be extraordinarily counterproductive.
Listen to the bankruptcy attorney. Sometimes the Creditor/Former Spouse doesn’t get what’s fair but rather, gets what the code provides. Here’s an example: I represented a former spouse of a chapter 7 debtor who had co-signed a debt. The chapter 7 debtor’s obligations were going to be discharged but the divorce agreement and order provided that this joint obligation was to be paid by the husband. While I was able to obtain a nondischargeability determination – which keeps the chapter 7 debtor on the hook to the creditor/ex for the debt, the bottom line is, the chapter 7 debtor remains obligated to the ex, not the bank. Thus, the bank cannot contact the debtor, but is permitted to contact (and collect from) the ex. Again, it’s not always fair – but it’s how the code works.
And as I mention in my recent blog directed to creditors, remain calm. If you have good bankruptcy counsel, you’ll know where you stand and have the information and tools necessary to make the best decision for you.
Related posts:
- When You Discover that You Are a Creditor in a Bankruptcy Case…
- Who Really Files Bankruptcy?
- What Does a Good Bankruptcy Attorney Do?
- The Easy Life of a Consumer Bankruptcy Attorney
- A Shakedown Backfires
Tags: Automatic Stay, Creditors, Divorce, Domestic Support Obligations
