Can an Ex-Spouse File Objection to Bankruptcy?

Objection to Bankruptcy by an Ex-Spouse is not possible unless you are a party in interest or a creditor.

An ex-spouse cannot use the bankruptcy court to gain revenge.   General grievances are not acceptable in bankruptcy court.  As we know, many divorces do not end well.

Former spouses may seek ways to create difficulties for the other party.    Yes, even in Bankruptcy Court.    After the matrimonial divorce case is over, many ex-partners now look further into the financial matters of their ex-partners.   

My father was a matrimonial lawyer for over 50 years.   I’ve witnessed the high tensions that often accompany divorces.    I never regretted the field of bankruptcy that I chose to focus my law practice.

However, bankruptcy has great financial protections.    Alimony, child support, and any court-ordered payments owed to a creditor must be paid.    If a Matrimonial Court orders that Divorce Legal Debts are paid by the other party, that debt remains and cannot be discharged in bankruptcy.    Alimony and child support are non-dischargeable in bankruptcy without an adversary proceeding.    These are general statements.  There are sometimes exceptions to the exceptions in Law.

If the ex-spouse has been paid, or is being paid, in full for all that they are owed, why would they object?    In the case below, there was no legal standing to object.   However, after a contentious divorce, only the Trustee, interested parties, and creditors in bankruptcy may object to a debtor’s bankruptcy.   This is done through an adversary proceeding.

I ran across this case and thought you might find it interesting; I did.

Objection to Bankruptcy Adversary Filing Chapter 7

• The couple divorced after two years of “contentious” litigation.
• Ex-wife filed for Chapter 7 Bankruptcy.
• The ex-husband filed an adversary proceeding asserting that she was not entitled to a discharge.
• He alleged that she made false statements regarding her assets and liabilities. (Undervalued her engagement ring, failed to disclose $1,000.00 per month in income, and other non-disclosures)
• All debts ex-wife owed were to be paid in full to her ex-husband outside bankruptcy, as they were non-dischargeable.

Objection to Bankruptcy – Bankruptcy Court Ruling

• The ex-husband had no standing because all debts owed to him were being paid in full.
• The ex-husband was not a creditor in the bankruptcy.
• A basic generalized grievance is not acceptable.
• The former spouse did not suffer a concrete and particularized injury – No Standing.
• The adversary proceeding was dismissed.

Just because you do not like someone, you cannot object to their bankruptcy if you have no standing, U.S.C. § 1109.

Revenge is not a reason to object to anyone’s bankruptcy case.  If you dislike someone, you may not attempt to prevent their bankruptcy.   If a creditor has been paid in full, they are not part of the bankruptcy case.   

Included in the ex-spouse’s income would be the income from child support and alimony; these two income sources would be listed.  Notification to the ex-spouse is not required because they are not a creditor.   All debts are current and relate to child support and alimony.

I do recommend, based on my experience with many divorce situations, that moving on is best rather than focusing on the other party.

I am here to help you.   I enjoy assisting clients in getting out of debt and providing asset protection.    Call me – I will meet with you personally, go over your finances and provide you with expert bankruptcy advice (I am Board Certified) whether bankruptcy is an option for you.   Adversary proceedings, when properly used, are beneficial to creditors.   Former spouses may not object to a divorce until they are creditors.

I represent creditors with adversarial proceedings when legally appropriate.  All creditors are listed in bankruptcy petitions.   Therefore, if you are entitled to be paid and it is not listed, or you observe that the bankruptcy petition contains misinformation, you have standing.

I have been successful many times in representing creditors so that they are treated fairly.   

One case in which the creditor had standing arose when my client was owed money, and the debtor was attempting to file for Chapter 7 Bankruptcy bankruptcy to discharge the debt. I represented the creditor, and the debtor could not discharge this debt.   In that case, my client is in a wheelchair after being beaten by a gang.    There is no justice in this situation, but I ensured that justice prevailed with respect to the debt owed.    That person’s wages will be garnished for the rest of his life, unless he finds a way to pay the approximate $1 million debt.   The garnishments remain in effect, and his wages continue to be garnished.

Call me today:   Ralph A. Ferro, Jr., Esq.  (201) 446-5904. That is my cell phone – I will speak to you directly.   

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