Hamilton, OH asked in Bankruptcy and Divorce for Ohio

Q: Hi! File bankruptcy now or wait on half of 401K funds due to me from QDRO? Also,CC comp suing me. Court hearing soon

No clue what to do first. Divorce decree from OCT states that I intend to file for bankruptcy. However, QDRO funds are WAY overdue due to negligence of ex, his lawyer,both…so it’s costing me money in lawyer fees every month chasing them down. I’m broke. Now I can’t afford to pay another attorney to file my bankruptcy until the QDRO funds are available. Also,one of the credit card comp filed against me for non payment. Court hearing w/ CC comp is in 2 weeks.Is it possible for the CC comp to garnish my QDRO funds when their paid to me? I’m thinking about filing bankruptcy on my own to buy time until I can afford a bankruptcy attorney.I bought a small house with the divorce settlement money for me & my children. It’s paid in full & I don’t want a lien on our house. Embarrassing! My credit score went from A+ to F++ in less than 2 years.Not sure if this matters: divorce decree states that if I’m not permitted to file bankruptcy then ex is to pay half of debt.Thank you for your time/advic

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2 Lawyer Answers
Cristina M. Lipan
Cristina M. Lipan
Answered
  • Bankruptcy Lawyer
  • Wantagh, NY

A: This is not legal advice. However, there is case law that says retirement funds owed by the ex spouse through a divorce settlement is an non-exempt interest and property of the estate (meaning a bankruptcy trustee can take it to pay creditors). However, retirement accounts are exempt, and a QDRO will protect that exemption. You may want that QDRO and the funds in your own retirement account before you file bankruptcy. Also you want to consider the equity available in your house, and that a trustee could also sell it. You absolutely need to speak to an experienced bankruptcy attorney.

Stuart Nachbar agrees with this answer

Stuart Nachbar
Stuart Nachbar
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Livingston, NJ

A: I highly recommend that you see/consult with an experienced bankruptcy professional in your state. You have the issues as to whether you can use a Homestead Exemption in your bankruptcy, should you deposit the QDRO funds and how, not to mention any other distributions and liabilities via the Divorce. Many offer free consults.

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