Expert: Mark J. Markus- California Bankruptcy Attorney - 10/12/2006

Question
I need some questions answered and not sure where to go. My ex husband just told me he filed for bankruptcy, however, when I checked with the clerks office, nothing has been filed yet. Our divorce/separation papers state that we need to split all costs for our timeshare; all costs until its paid for or sold. Can he go bankrupt and renag on his court order to split it? Is it indeed mine? How can I protect myself or is there nothing I can do? Does he need to notify me since this timeshare is in both our names? Do I need to get an attorney?

Answer
First, it's important that you understand a legal distinction about who owes who here.  The divorce court order does not affect the timeshare creditors.  As far as they are concerned, both you and your ex-husband still owe them money.  What the divorce court order did was create a debt that your ex-husband owes to you if he fails to make the payments on the timeshare.   Under the new bankruptcy laws that went into effect last year, it is my understanding that your ex-husband CANNOT discharge that debt to you (he could have under the prior laws).  Thus, if he fails to make the payments on the timeshare, you supposedly have a remedy against him to recover whatever the amount of the payments are supposed to be, particularly if you make his portion of the payments in order to protect the timeshare (you'd need to discuss that with your family law attorney).  Also, be aware that if there is equity in the timeshare which is not exempted in his bankruptcy case, the Trustee could sell the Timeshare (which has nothing to do with your ex making the required payments).