Are court orders invalid when someone claims bankruptcy?

Question: My estranged husband filed bankruptcy in Aug/08. Over 2 years ago a court order (Superior Court of Justice)stated he was responsible for the remainder of a joint credit line (I paid my obligation when our house sold). In Mar/08 I took him to court and had a little under half of his debt ordered to be paid.He was also found in contempt for not complying with the original order (2 years ago) It is now in collection and the bank is saying I'm responsible. If a court order is made, is it invalid when someone claims bankruptcy? I should mention, the order states and I quote "the applicant (my estranged husband) will be responsible for the balance and liability owing on the joint .....credit line and shall indemnify and save harmless the respondent (me)". I hope this helps answer my question. Would really appreciate your response. Thanks

Answer: In most cases debts are discharged when someone is discharged from bankruptcy. If the debt existed before the bankruptcy, it would be discharged in the bankruptcy.

However, one exception would be debts that relate to child and spousal support. If the court order has in some way characterized the debt as support, it may not be dischargeable in the bankruptcy.

This is a very complicated area of the law, so we strongly recommend that you discuss this with your lawyer (who may need to consult a bankruptcy lawyer to fully answer your question).

Labels: bankruptcy