Dischargeability of family law equalization payments
Posted: Fri May 14, 2010 10:46 am
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YES
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Steven B. Lever
Sent: Thursday, May 13, 2010 5:24 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Dischargeability of family law equalization payments
Since BAPCPA I have had the good fortune of not being embroiled in any
bankruptcy/family law disputes. However, I've lost my edge on the issues,
and now I have had one arise --
Question: Does an order for payment from a family law court for equalization
of the community fall within the discharge exception of 11 U.S.C.
523(a)(15)?
Presently it reads:
(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-
(15) to a spouse, former spouse, or child of the debtor and not of the kind
described in paragraph (5) that is incurred by the debtor in the course of a
divorce or separation or in connection with a separation agreement, divorce
decree or other order of a court of record, or a determination made in
accordance with State or territorial law by a governmental unit;
It appears that the old pre-BAPCPA distinction of support vs. equalization
payments; and if equalization then "who can afford to pay this?" question
that weighed and balanced is now history and it is just nondischargeable,
period. Is that reading correct?
Thanks, Steve
Law Offices of Steven B. Lever
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> Steven B. Lever
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Message
YES
David A.
Tilem
Certified Bankruptcy
Specialist*
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