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LaWayne Larson v. Debra Ann Larson (In re Debra Ann Larson)

Bankr. No.: 
01-50166
Adv. No.: 
01-5010
Chapter: 
7
Date of Decision: 
March 15, 2002
Issue: 
Whether a credit card debt assigned to Debtor in a pre-petition divorce should be nondischargeable under § 523(a)(15) where Debtor paid the amount of the debt existing on the date of the divorce decree, but where Debtor also continued to charge on the card, which resulted in a significant debt in her name and in her ex-husband’s name on the petition date?
Ruling: 
The debt was nondischargeable under § 523(a)(15) in the amount due on the petition date. Although Debtor had paid the credit card company the amount that was due at the time of the divorce, she was still obligated under the divorce decree to hold her ex-husband harmless from that creditor’s claim, which had grown to include the sum due on the petition date. Thus, the sum due on the petition date fell under § 523(a)(15). Further, Debtor did not meet her burden of proof under either exception provided by § 523(a)(15).
Full Bankruptcy Court Decision: