skip to main content

Can Bankruptcy Remove A Joint Debt From A Divorce Decree?

Bankruptcy can remove personal liability to the creditor for a debt assigned to the filing party in the divorce decree, however the debtor may still remain liable to their ex-spouse.  The ex-spouse also has the right to object to the discharge of the debt, arguing that since the debtor is liable for it pursuant to the divorce decree, the debt should not be allowed to be discharged.  The Bankruptcy Code excepts from discharge any debts that are clearly defined as alimony or spousal support, and excepts many debts that are the result of a property settlement in divorce, so pursuing the discharge of a debt assigned pursuant to a divorce decree is a risk.