23 May 2012 0 Comments

Divorce, bankruptcy and debts

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During divorce and bankruptcy proceedings, certain issues play a big part, such as debts incurred during the marriage.

According to Bankruptcy Code Section 523a, the following types of debts are not dischargeable under Chapter 7, but can be discharged under Chapter 13 if the debtor complies with a payment plan and has paid all support obligations:

  • Estate property is protected by the automatic stay; requires court approval
  • Community property becomes property of the bankruptcy estate
  • A pension plan may be able to be claimed as exempt

California law controls the extent of the exemptions the debtor is entitled.

If you are going through divorce and your soon-to-be ex-spouse is thinking about filing for bankruptcy, contact an experienced Riverside Family Law attorney who can make sure your final agreement is worded in such a way as to protect you and your assets.

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