• Does bankruptcy judge overrule the divorce judge?

    I got this email from a member of Canadian Money Advisor. It's regarding her divorce settlement and the debts she 'acquired' from the marriage. Oh yeah, this lady has 5 kids that she's trying to support.

    The Plaintiff (husband) shall continue to maintain all of the martimonial liabilities and shall indemnify the Defendant (wife) from further responsibility for these liabilities

    That seems to say to me that whatever was considered 'matrimonial' debt, was the Plaintiff's responsibility, and according to the definition of 'indemnify' from the dictionary, I am absolved from further action.


    The situation is that while married, this couple accrued approximately $350,000 in debts including mortgage, car, credit cards etc.. together..

    After they got divorced, the husband declared bankruptcy and cleared himself of any prior debts.

    Since this topic goes beyond my scope of understanding... I'm curious if any body knows the following:
    1) Does the divorce judges rule override the bankruptcy judges ruling?
    2) Does the divorce judgement have a statutes of limitations
    3) Since the plaintiff was ruled to continue to maintain all of the matrimonial liabilities , is he still required to do so...?

    My personal comment is still the same.. this scares me to death.. The devastation brought about by a high debt / divorce mixture is stunning. Even if you're making a very decent salary, it would be hard to maintain this type of debt.

    Divorce takes out one of the main bread winners, just as a death would. However with death you can get the life insurance policy benefits. There is no divorce insurance to cover you.

    HELP NEEDED ON THIS TOPIC
    If you have any experience dealing with this topic your responses would be much appreciated.. Divorce law and bankruptcy laws are complicated enough. Having one supersede the other is an even larger topic I'm sure.


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3 Comments
On Sep 13, 2007, Bob Brown Said:
so, the creditors should take the brunt because the wife and husband had a bad marriage and managed their lives poorly?

That's ridiculous.

The wife should get a job and pay some of the expenses. The husband is probably burnt out from trying to carry the load .

They should both carry the load, and pay it off, even if it takes 25 years. That's the decisions they made, and the decisions they should live with.
On Sep 11, 2007, Monty Loree Said:
Hey Name,
That's an interesting point... I hadn't thought of sending the court docs to the creditors...

I'll have to chew on that a little.
On Sep 11, 2007, Name Said:
No experience here, just my thoughts.

So post divorce hubby gets the saddled with 100% of the liabilities. Ok, fine.

IMO at this time the wife should have notified any and all creditors (where her name appears as a party responsible [in whole or in part] for the debt) that she is no longer responsible for any part of that particular debt and her name should be removed from any and all paperwork.

Ok, so she didn't all that - not surprising since most people wouldn't go to such trouble.

But then later, hubby concludes that he cannot handle the debtload so declares bankruptcy.

So IMO the wife has *NO* liability for any of the debts, nor should her credit rating be affected by his bankruptcy or the debts she was previously associated with.

She should make copies of the divorce judgement and mail it to any creditors who think otherwise.