Law Office of Ginger C. Cord, PSC. - Bankruptcy
Free Initial Consultation

Local 859-963-2073

Toll Free 800-762-6916

Call Today

Pursue A Bright Financial Future
[an error occurred while processing this directive]
Freedom From Debt Is On The Horizon

Bankrupt man must pay ex-wife's attorney's fees

Divorce can be very expensive for some people in Kentucky, especially when court proceedings take a long time to reach a conclusion. The U.S. Court of Appeals for the Seventh Circuit recently ruled that a divorced man must pay his ex-wife's divorce-related attorney's fees even though the man filed for Chapter 13 bankruptcy after the divorce.

An individual can obtain debt relief and keep their valuable property by filing for Chapter 13 bankruptcy. During the bankruptcy process, the debtor will usually repay some of their outstanding debts over a three to five year period while the remaining debts will be discharged. However, debts that are considered domestic support obligations are not dischargeable in bankruptcy. Rather, they are given priority status in the repayment plan.

In the recent appeals court case, which concluded on Sept. 13, the court found that a previous court order instructing the divorced man to pay $25,000 for his ex-wife's attorney's fees could be considered a domestic support obligation. The man argued that the award was not in the nature of support because it was intended to be a punishment and he was instructed to pay the amount directly to his ex-wife's attorney. The appeals court rejected the man's argument and ruled that the attorney's fees should be given priority in the Chapter 13 repayment plan.

Though not all debts are dischargeable, filing for Chapter 13 bankruptcy can allow a person to obtain relief from credit card debts, personal loans and foreclosures. Many debtors choose Chapter 13 over Chapter 7 bankruptcy because it can allow them to keep their home and other valuable personal property. A person who is thinking about filing for bankruptcy may want to speak to a lawyer about their options.

No Comments

Leave a comment
Comment Information