Sunday, January 27, 2013

Are Attorneys Fees in any Divorce Dischargeable in Financial distress?


I was asked today through a potential new client once the attorney's fees awarded regarding the a Divorce or separated in family law court to a different one spouse's lawyer can be eliminated (discharged) inside an bankruptcy case.   The answer then is that it depends.

In large domestic support obligations, that is normally those obligations issued in regards towards the maintenance or support at former spouse or what kid, including alimony, are not dischargeable in a bankruptcy case.   So the key factor is determining if that debt is for alimony, maintenance or support of a child or spouse.       It's not easy always clear from the Divorce decree properly as other family law order.

Marital equalization costs, such as those where an award is made against one spouse to pay out assets being given to an alternative, are generally not examined for support or treatment.     Similarly, attorney's fees awarded to an alternative spouse's lawyer is likely none of support or maintenance.

Debts incurred in or in connection with a decent Divorce decree or separation which are not for the alimony, support or maintenance of the spouse or children by installing dischargeable in a Section 13 bankruptcy case, but could in any other section of bankruptcy.

Thus, the key is determining whether the debt you want is for the support or maintenance of the spouse or daughter or son, and which chapter of bankruptcy can be involved.   This may involve experiencing the opinion of a family law attorney in addition to a qualified bankruptcy lawyer in the geographic area where the matter arose.

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