In the bankruptcy case of Blackburn, Terry; In re (Blackburn v. Blackburn), the bankruptcy judge ruled that obligations incurred through a divorce decree was not dischargeable in bankruptcy. The judge also ruled that he did not have discretion in the matter.

The details of the bankruptcy case:

The Chapter 7 bankruptcy debtor was a 50 year old man, who was physically unable to work.  He claimed that an obligation to his ex-wife incurred through a divorce decree would create a substantial financial hardship and requested a discharge of that obligation. The debtor’s ex-wife objected to the discharge of her claim. The bankruptcy court ruled that the obligation which was incurred through a divorce decree could not be discharged in bankruptcy and that the judge had no discretion in the matter.

Financial obligations incurred through a divorce decree can create a considerable hardship for the debtor; however, they are not automatically dischargeable in bankruptcy. If you are facing financial hardship due to obligations created by a divorce decree, please speak with your bankruptcy attorney about how these obligations can be handled during bankruptcy.

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