If service was not perfected in a divorce does a bankruptcy court have subject-matter jurisdiction to hear the lift stay

Question

I am the debtor in a CH13, I was not served w/ divorce citation; my estranged spouse motioned the court for relief from stay of acts against property and other acts, to lift my CH13 stay in order to proceed w/ property division in District Court, I wasn't served & did not sign a waiver of service of the Divorce citation. I am wondering does the Bankruptcy court have subject matter jurisdiction to hear the case

Timothy Denison · Answer

Yes.  Bankruptcy court has jurisdiction regardless of service in divorce case.

James L. Arrasmith · Answer

Your question touches on a complex intersection of bankruptcy and family law. While bankruptcy courts generally have jurisdiction over property of the estate, there's a crucial underlying issue here regarding the validity of the divorce proceedings. 
 
If you weren't properly served with the divorce citation and didn't waive service, the divorce court may not have established personal jurisdiction over you. Without proper service in the divorce case, the bankruptcy court might question whether there's a valid underlying state court action that would justify lifting the automatic stay. This jurisdictional defect in the divorce proceedings could be relevant to the bankruptcy court's consideration of the motion for relief from stay. 
 
You should raise this service issue in your response to the motion for relief from stay, specifically arguing that the lack of proper service in the divorce case means there isn't a valid pending state court proceeding that would justify lifting the stay. Consider consulting with bankruptcy counsel who can help you properly present these jurisdictional arguments to the court. Remember to gather any documentation showing you weren't served and haven't waived service of the divorce citation.

Q: If service was not perfected in a divorce does a bankruptcy court have subject-matter jurisdiction to hear the lift stay