Expert: Mark J. Markus- California Bankruptcy Attorney - 11/4/2008

Question
My cousin and her husband were getting a divorce in South Carolina.  They had purchased a van during the marriage but the title and loan was only in his name.  He declared bankruptcy during the separation.  The van was listed as a debt.  My cousin didn't make it to the court date due to she is now living in Kansas and didn't have the funds to attend.  In the final divorce decree she was awarded the debt for the van.  My question is if he declared it on his bankruptcy then how is she getting stuck paying for it?

Answer
This depends in part on South Carolina marital/property laws, of which I have no knowledge, but in general, if she did not file bankruptcy, then she is still liable for whatever debts came from the marriage for which she was previously liable.   From your facts you state that only he filed the bankruptcy case.  The family law order allocated certain debts to her which basically is an apportionment between the (former) spouses.  It didn't change her liability at all.  If she owed the money (due to community property laws--if SC is a community property state) before the divorce decree--which is probable--then she still owes it now.  The only thing the divorce decree did was make her liable to her ex-husband for that debt, but it's meaningless in that regard because he presumably received a discharge of that obligation in bankruptcy.