CALIFORNIA FAMILY LAW
...Bankruptcy
......Effect on Division of Property/Debts
.........Effect on Property Division in Disso.
............Certain Debts Not Dischargeable
9 Cards On This Topic:

Discharge in bankruptcy does not discharge certain dissolution related property obligations.

Debts for fraud, embezzlement, larceny or breach of fiduciary duty are not dischargeable.

Bankr. ct. properly held that H's obligation to “pay and hold Wife harmless” from credit card debts, per stipulated disso judgment, was properly excepted from his Chapter 7 discharge, and SJ for W affirmed.

Bankr. ct. erred in determining WA CL establishes marital relationship as in the nature of express or technical trust, imposing fiduc. duties on spouses to manage c/p for marital community's benefit for purposes of establishing §523(a)(4) claim.

Bankruptcy court applied incorrect intent standard re H's “defalcation” [“bad acts” in using 401(k) funds for himself] to except a portion of his debt to W from discharge under §523(a)(4).

Before finding that H’s obligation to pay c/p debt was discharged in pre-BAPCPA bankruptcy, court must make required findings. [Pre-BAPCPA]

In determining dischargeability of divorce related debt, court may consider income of debtor's live-in romantic companion when they are economically interdependent or form single economic unit.

Where benefit to debtor spouse of discharge of debt associated w/marriage termination does not outweigh detriment to creditor spouse, dischargeability hinges on ability to pay.

Nondischargeable debts.