Bankruptcy and Joint Debt with Ex

[ANGEL99]

My ex filed for a Ch13 a year ago which was dismissed. To protect myself, I filed a CH7 and am a few weeks from discharge. Now that he was dismissed (not sure why that was) my ex is receiving garnishment letters on a few joint accounts we had.

One debt is a loan with a credit union, the decree actually does not even list this debt which was odd to me now. I assume he has no recourse here.

The other is IRS debt from several years ago which was discharged in my bankruptcy. The decree does say each of us has to make month payment to IRS until paid off. I was paying monthly up until I filed.

I understand the decree overrides the bankruptcy. But how might this play out? I heard he would have to pay the debt (IRS) in full and then sue me for the difference?

[FireMedic1]

The divorce agreement was made solely between you and your ex. The creditors were not part of the deal. They previously had the legal right to go after each person who was legally obligated on the debt. Your divorce agreement has not changed that. If both of you were obligated under the contract, the creditors still have the legal right to collect from each of you. If you file bankruptcy, you can most likely discharge your obligation to pay the debt, but it does not eliminate your ex spouse’s liability. Once your liability for the debt is gone, perhaps the creditors will go after your ex more aggressively.

[despritfreya]

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@ANGEL99 wrote:

I understand the decree overrides the bankruptcy. But how might this play out? I heard he would have to pay the debt (IRS) in full and then sue me for the difference?

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Your basic understanding is correct. 

Through the divorce decree, you agreed to indemnify your ex-husband as it relates to the tax debt by making certain payments.  To the extent he is required to pay what you agreed to pay, he has a claim against you and could enforce that claim by bringing you back to the family law court or the bankruptcy court. See 11 U.S.C. § 523(a)(15).  

As it relates to the "forgotten" debt, I do not see him having the ability to go after you if he pays it since there was no court ordered agreement between the two of you.

Des.

[Tuscani]

I am sure this happens all the time. My concern would be you paying your half and then he eventually figures out a way to refile and then you wasted that money. I am not even sure how you would make those payments. They would have to be to her direct and likely court ordered at this point. If this were me (not giving legal advice) I would consult my family lawyer ASAP and not agree to make any payments until he pays his half. 

@despritfreya if this went back to court, would it be a suit agsint the OP or just handled via a likely mediation clause in the decree? I would worry about potentially getting a judgement for this later. Also, if OP is set to discharge in few weeks, not sure that he has enough time to do anything with the BK court. Could this delay discharge even?   

[despritfreya]

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@Tuscani wrote:  if this went back to court, would it be a suit agsint the OP or just handled via a likely mediation clause in the decree? I would worry about potentially getting a judgement for this later. Also, if OP is set to discharge in few weeks, not sure that he has enough time to do anything with the BK court. Could this delay discharge even?   

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Depends upon the terms of the divorce decree. 

I have see the matter handled by the filing of a Motion to enforce the decree with such being filed in the state court. 

I have also seen it done by the filing of a 523(a)(15) complaint in the bankruptcy.    This complaint can be filed at any time, even after the bankruptcy case has been closed.  As a result the entry of the discharge is not an issue.

Des.