Q: Does a ex spouse filing Ch13 Bankruptcy make it more difficult for me to collect attorney fees IF I did win?
It is in regards to a Contempt Trial where both have filed them on each other over Child support, property division and visitation.
Also, I am not asking if it can be 100% discharged but can it (attorney fees reimbursement) be added to the Ch 13 payment plan at a reduced monthly amount? This is what she is claiming will probably happen so just curious if this is correct?
A: In a Chapter 13 bankruptcy creditors are paid based on their priority status. Child Support is a priority debt that is not dischargeable. Property division is an unsecured debt and can be discharged. In a Chapter 13 plan unsecured creditors receive a pro rate share of the amount the debtor is paying to all their unsecured creditors. The percentage to general unsecured creditors in a chapter 13 plan can be anywhere from 0% to 100% depending on the debtor's disposable income. If your attorney fees award is in the nature of support you can object to confirmation of the plan if it does not pay the claim in full. If your attorney fees award is in the nature of property division it is a general unsecured claim an may not be paid back in full or at all under the plan. As a creditor if your former spouse files a Chapter 13 you will receive notice and a copy of the proposed Plan. Look to see how your claim is provided for in the plan. If you claim is not provided for you are likely being treated as an unsecured creditor and you should look for the projected percentage payback to general unsecured creditors near the end of the plan.
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