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The debts are paid off and the bankruptcy is closed or any remaining debts are discharged.

Assuming the petitioner was the ex-wife who received the inheritance, the divorce court order still stands, and the ex-wife may file a contempt action in divorce court to have the ex-husband pay the ex-wife the amount used to pay the debts. He may even be liable for some or all the costs of the bankruptcy if his failure to pay the debts led to the bankruptcy.

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Q: What happens when a bankruptcy trustee uses an unexpected inheritance the petitioner receives to pay off debts a judge had ordered the ex-husband pay off at prior divorce proceedings?
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