If you are considering filing bankruptcy, whether you are in the middle of a divorce proceeding or have already gotten a divorce, you need to consult with an experienced bankruptcy attorney. Former spouses have certain rights under the Bankruptcy Code that may prevent obligations assigned or decreed to them by a Divorce Court from being discharged in bankruptcy. For example, a support obligation, often in the form of child support or alimony cannot be discharged by a Bankruptcy Court.
A three Judge panel of the Eleventh Judicial Circuit, which includes the states of Alabama, Georgia and Florida, recently held that a second mortgage could be stripped or removed as a lien on a home where the value of the home is less than the amount owed on the first mortgage in Chapter 7. This decision may be short lived because the losing party has moved for the full panel of the Eleventh Circuit (all nine justices) review the case. We expect a final ruling in October, 2012.