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Can ex-husband file bankruptcy to pay back a loan to payoff his ex-wife for her Alimony?

Jennifer Patterson

in Student Loans

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Mindee Nelson on January 9, 2018

The pension obligation cannot usually be discharged in bankruptcy, but must be paid in full, with two important exceptions. If a divorce decree specifies that the obligation of a spouse is alimony, but the obligation is not actually in the nature of alimony, then the obligation may be discharged in the bankruptcy. For example, if the judgment of divorce provides that the husband shall pay a civil debt to XYZ corporation, and further specifies that the husband's payment of the debt shall be treated as alimony, the husband may arguable have the ability to discharge such debt in bankruptcy even though the divorce decree calls his payment of the debt alimony. Also, in certain cases, a former spouse may be able to comply with an obligation of spousal support if the obligation has been assigned to a third party. For example, suppose that John and Mary Doe divorce. John is required to pay Mary alimony of $500.00 per month. John does not pay the alimony and Mary, who needs the money, assigns the right to collect alimony to his father, who gives Mary the $500.00 per month in exchange for the transfer. The father of mary now has the right to collect the alimony from John. If John files bankruptcy, then the obligation of alimony can be discharged in the measure in which he has been assigned to Mary's father. The Bankruptcy Code of the united States (Title 11 of the united States Code) states in section 523 that: (a) A discharge under Section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt . . . (5) to a spouse, former spouse, or child of the debtor, for alimony, maintenance or support of spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that (a) the debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to§ 402(a)(26) of the Social Security Act, or of any debt which has been assigned to the Federal Government or to a State or any political subdivision of a State); or (B) the debt includes a liability designation as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, of maintenance or support . . . ..


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