Bankr. No.:
05-40658
Adv. No.:
05-4069
Chapter:
7
Date of Decision:
December 16, 2005
Issue:
Whether certain joint marital debts that Debtor was ordered to pay in the parties’ earlier divorce were dischargeable under either § 523(a)(15)(A) or § 523(a)(15)(B)?
Ruling:
The debts were nondischargeable. Debtor was sitting on $13,000 of equity in her home and could use those funds to pay the subject debts, especially where the funds she used to purchase the house were originally intended by the parties to be used to pay the marital debts. That the house had been declared exempt as Debtor’s homestead did not alter the application of § 523(a)(15)(A). Consequently, Debtor did not show under § 523(a)(15)(A) that she had an inability to pay the subject debts. The record also showed the benefit Debtor would receive if the debts were discharged was no greater than the detriment Plaintiff would suffer if the debts were discharged. Consequently, Debtor was also not entitled to relief under § 523(a)(15)(B).
Full Bankruptcy Court Decision:
