Yuliana owes $100,000 in debt related to her recent divorce….
Yuliana owes $100,000 in debt related to her recent divorce. She is unable to make any payments on this debt due to her low paying job. She consults a bankruptcy attorney who advises her that a Chapter 13 bankruptcy is best for her and that she can discharge those debts through her bankruptcy. Yuli’s Chapter 13 plan is confirmed providing to repay 20% of the divorce debt and she begins making payments. Six months later, Yuli loses her job and can no long make her plan payments. She is forced to convert to a Chapter 7. What effect does the conversion have on her debt from her divorce?