Can she declare bankruptcy


#1

My friend settled ED with his STBX at his separation. She was supposed to either pay off the mortgage on their home, or to refinance it to remove his name from the loan by a certain date. (that was just her part) He fulfilled all the requirements for the ED (including making the payments on it until this is done). She didn’t do it. They’ve been to trial, and she was ordered that she has until September to do this, or she will be in default and will be removed from the home and held in contempt by the court.

She has now decided that she is going to declare bankruptcy and that doing so will make the order null and void; she will be able to keep the house and he’ll have no claim to it. Can she do this, and what are the ramifications from him if she does?


#2

I found this on the internet so it must be taken for what it is worth:

Chapter 7: Trustee liquidates debtor’s nonexempt assets to pay creditors, most consumer cases involve no nonexempt assets and are closed within 6 months with no payments to creditors, certain debts may be excepted from the bankruptcy discharge, including spousal support and, under certain circumstances, other divorce-related debts.

Chapter 13: Repayment plan available only to individuals, trustee collects payments and disburses to creditors, plan usually lasts from 3 to 5 years, debtor must pay secured and priority claims in full but need not pay unsecured claims in full as long as debtor contributes all disposable income to plan and creditor receives at least as much as creditor would receive in a chapter 7 case, certain debts are excepted from the discharge, including support claims but not other divorce-related debts.


#3

If she files for bankruptcy the current order will not be null and void, however your friend needs to ensure he is listed as a creditor in any bankruptcy proceedings she initiates.