Random Politics Stuff Thread...

@Genghis Khan @Cowboysrock55

Either of you guys do Family law?

I do a lot of bankruptcy and equitable distribution in a divorce is widely accepted as dischargeable in Chapter 13 (though not Chapter 7). So I have a client who filed and listed the ED as an obligation which would naturally be stayed by the automatic stay and then discharged. Two weeks later my client gets hit with a Contempt motion in state court for not performing under the ED order. I immediately respond that it's a stay violation and perhaps warranting sanctions against the ex spouse.

Now I have an opposing counsel telling me that because a QDRO was entered before the bankruptcy filing that the QDRO vested property rights in the ex, so she's not "collecting a debt," in violation of the automatic stay but rather just trying to get her own property.

So, to return to my question....if you do family law... is that what a QDRO actually does? I thought it was a vehicle in order form to get money from a protected account into another protected account without incurring taxes, early distribution penalties, exposing to creditors, etc. Does entry of a QDRO actually convey some sort of title? I feel like the contempt motion is a stay violation either way, but, if it's her property stay relief would be granted and she'd get her money, it would not be a dischargeable obligation then.

I feel comfortable asking despite you guys living elsewhere cause to my knowledge QDROs are federally governed.

Sorry for hijacking the thread but I didn't want two separate PMs.
 
Smitty said:
@Genghis Khan @Cowboysrock55

Either of you guys do Family law?

I do a lot of bankruptcy and equitable distribution in a divorce is widely accepted as dischargeable in Chapter 13 (though not Chapter 7). So I have a client who filed and listed the ED as an obligation which would naturally be stayed by the automatic stay and then discharged. Two weeks later my client gets hit with a Contempt motion in state court for not performing under the ED order. I immediately respond that it's a stay violation and perhaps warranting sanctions against the ex spouse.

Now I have an opposing counsel telling me that because a QDRO was entered before the bankruptcy filing that the QDRO vested property rights in the ex, so she's not "collecting a debt," in violation of the automatic stay but rather just trying to get her own property.

So, to return to my question....if you do family law... is that what a QDRO actually does? I thought it was a vehicle in order form to get money from a protected account into another protected account without incurring taxes, early distribution penalties, exposing to creditors, etc. Does entry of a QDRO actually convey some sort of title? I feel like the contempt motion is a stay violation either way, but, if it's her property stay relief would be granted and she'd get her money, it would not be a dischargeable obligation then.

I feel comfortable asking despite you guys living elsewhere cause to my knowledge QDROs are federally governed.

Sorry for hijacking the thread but I didn't want two separate PMs.
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I wish I knew but I have very little experience in family law and never touched on that.
 


Who is "they"?
 
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