Since Bankruptcy is a Federal Court proceeding, it can allow one party to be “released” from some or all debts.  Therefore, if Bankruptcy is an issue in your Divorce proceeding, it is very important to bring this to your lawyer’s attention.  You may also need specific advice from a lawyer who practices extensively in the area of bankruptcy law. It is important to note that child support and spousal maintenance (alimony) payments cannot be discharged through Bankruptcy, but property settlement (that has not yet been paid as ordered in the Divorce Decree) or debt (that was assigned in the Divorce Decree) may still be dischargeable.

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