Chapter 13 “Super Discharge”: Eliminating the Property Settlement Debt from Your Divorce

In my experience, divorce is one of the most common causes of bankruptcy filing. Whether it’s the transition from 2 incomes down to 1, divorce attorney fees, or property settlements in the divorce, I’m never surprised when I hear a client start with, “it all started when I got divorced last year…”

With that in mind, Chapter 13 bankruptcy offers a unique advantage often referred to as the "super discharge," which allows you to eliminate certain debts that would not be dischargeable in Chapter 7. This includes property settlement obligations from your divorce!

Under 11 U.S.C. § 523(a)(15), debts related to property division in a divorce—such as an obligation to pay an ex-spouse a lump sum or take responsibility for marital debts—are not dischargeable in Chapter 7. However, in Chapter 13, these obligations can be discharged after you complete your chapter 13 repayment plan.

This means that if you cannot afford to meet the property settlement terms outlined in your divorce decree, Chapter 13 offers a path to relief. Keep in mind, domestic support obligations, such as alimony and child support, remain non-dischargeable in all cases.

As always, contact a bankruptcy attorney to find out hwo bankruptcy can help get you a fresh start.

Thanks for Reading!

Lucas Ruffing
Attorney
740-815-1114 (Call/text)
LucasRuffingLaw@gmail.com (email)