Petition Filing When A Dissolution Action Is In Progress
However, in such circumstances it is recommended that you consult with your family law attorney. The attorney is an expert who understands the complexities of the laws associated with a bankruptcy claim. They will provide you with an accurate depiction of the situation based on your unique circumstances and numerous other factors associated with the same. Filing for bankruptcy during the pendency of a dissolution action, such as a divorce proceeding, can have numerous consequences. Your family law attorney will assist you in comprehending these ramifications and taking the appropriate action. In addition, you should be aware that if the court releases you from community debts, your spouse will be responsible for paying off the entire balance of those debts. In other words, if you file your petition while a dissolution action is pending and the community debts are considered dischargeable, the liability will be transferred to your spouse.
Debts that cannot be released under any circumstances
Generally, bankruptcy under this chapter is viewed as a discharge of all debts. However, there are certain types that cannot be discharged in any circumstance, even if you win your Chapter 7 bankruptcy case. Regarding which debts are dischargeable and which are not, the court's decision and your particular circumstances will determine which debts are dischargeable and which are not. In normal circumstances, the bankruptcy court does not discharge the following debts.
Sanctions and confiscations,
Criminal penalties,
Student loans,
Prior bankruptcy-related nondischargeable debts,
Liability for injury or fatality caused by intoxicated driving,
Debts caused by the debtor's malicious or intentional malfeasance,
Responsibility for alimony and child support, and
Taxes (except in specific instances).
However, sometimes the debtors are unable to have even dischargeable debts eliminated because the creditors have filed an appeal. However, once the debtors win their bankruptcy claim and the equity interest in the property is exempt, they can typically retain the property through redemption or reaffirmation.
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