As part of divorce, I agreed to pay half of college costs for kids. However, last year I declared bankruptcy Am I at all protected?

Your legal remedy is go file a Complaint for Modification of the Divorce Agreement immediately. Only the court can determine if you are absolved of this legal/contractual responsibility due to the bankruptcy. 

However, you should know  that when filing a Chapter 7 or 13 bankruptcy petition, an automatic stay provided by Bankruptcy Code section 362(a) immediately goes into effect which prohibits all creditors’ attempts to pursue collection of a claim against the debtor or against property of the debtor’s bankruptcy estate unless excepted.

Section 362(b) of the Code provides for certain exceptions, including many family law matters and domestic support obligations. On the other hand, some family law obligations may also be considered priority claims under Section 507(a)(1) of the Bankruptcy Code, entitled to a priority in payment in bankruptcy, specifically, Bankruptcy Code Section 362(b)(2)(A)(ii) provides:

The automatic stay created by a bankruptcy filing bars the commencement or continuation of most legal proceedings, but it has no effect on a proceeding for the establishment or modification of an order for a Domestic Support Obligation such as child support. 

In other words, the Bankruptcy code allows a modification of the child support order; however this still leaves a question of whether the terms under the divorce agreement in also covered by this. Typically, if you filed and received a discharge in a Chapter 13 case, you may be able to discharge property settlement obligations. It is likely that an agreement to pay for college would be in the nature of support, rather than property settlement, so the likely answer to your question is “No.”   However, only a court of competent jurisdiction allow you to modify your obligation under the Divorce Agreement.

8 Lawyers agree with this answer
chosen Best Answer by asker
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s