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January 2, 2009, Newsletter Issue #97: Property Settlement Items in a Bankruptcy After Divorce
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Tip of the Week
Items in a court-approved property settlement are presumed to be non-dischargeable in a bankruptcy. However, there is no hard rule about this subject and may be able to have one or more related debts discharged. To have a chance to overturn this convention, you must show that your inability to pay this debt and take care of yourself outweighs the harm that might befall your ex-spouse and/or any minor children who are involved in the divorce. For instance, if you agreed to make credit card payments on former joint accounts, and now you find you do not have the funds to pay your rent or purchase food, you can petition the court to allow you to include these debts in your bankruptcy filing. No real harm would come to your ex-spouse or children, but a discharge of these debts would benefit you greatly.
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