An ex-spouse cannot use the bankruptcy court to gain revenge. General grievances are not acceptable in bankruptcy court. As we know, many times divorces do not end well.
Ex-spouses may look for ways to create a difficult situation for the other. 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 saw the high tensions during 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 divorce court proceedings that are 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 and exceptions to the exceptions in Law.
If the ex-spouse has been paid or is being paid 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 to a bankruptcy can object to someone’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 Chapter 7 Bankruptcy
- Couple divorced after two years of “contentious” litigation.
- Ex-wife filed for Chapter 7
- Ex-husband filed an adversary proceeding stating that she was not entitled to a discharge.
- He claimed she had made false statements about 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 totally to her ex outside of bankruptcy as they were non-dischargeable.
- Ex-husband had no standing since all debts owed to him were being paid in full.
- Ex-husband was not a creditor in the bankruptcy.
- A basic generalized grievance is not acceptable.
- He did not suffer a concrete and particularized injury – No Standing.
- 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.
I am here to help you. I enjoy helping clients get out of debts as well as 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 used property are beneficial to creditors. I represent creditors with adversarial proceedings, when legally appropriate.