Expert: Terry Leeders - 11/29/2008

Question
Hello

My Dh and I desperatley need to file a Chap 13.  His ex recently sued us for nothing having to do w/ child support.  My DH was obligated to pay a debt which he could not do.  As a result, her tax returns were garnished.  She sued and won.  Through Chap 13, can we include the amount she was awarded by the court and have it reorganized along w/ the rest of our debts?  Also, what about other debts DH had to pay that they may come after her for when they are finally discharged at the end of our 3 - 5 yr. plan?  If they sue her or come after her, can she then sue us?

Thanks

Answer
All divorce debts can be included in a chapter 13.  If your chapter13 repayment plan pays back less than 100% of the debts, then he may need to pay them back after the bankruptcy, since the divorce decree will control.  The Chapter13 is a 5 year repayment plan, so all of the debts can be paid over that time, based on the monthly household income.  Once filed, the creditors must stop the collection activity.  They can sue up until the case is filed.