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Chapter 7 Bankruptcy During Divorce

Chapter 7 Bankruptcy, Divorce
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Filing an involuntary Chapter 7  bankruptcy during a divorce is just wrong.  The Bankruptcy Court deters filing an involuntary bankruptcy done in bad faith.  Before filing an involuntary bankruptcy, spouses should consult with a bankruptcy lawyer.

Filing of Involuntary Chapter 7 Bankruptcy:

  • Husband and Wife are in a Divorce proceeding.
  • As a result of the Divorce, husband looks for a way to seek some sort of revenge against his wife.
  • Without consulting an attorney, the Husband files an involuntary Chapter 7 bankruptcy petition against his wife.
  • It is obvious to the Court that he had no intention or knowledge to complete all the paperwork or steps required in the bankruptcy process.
  • The Chapter 7 Bankruptcy is filed in bad faith.
  • The involuntary Petition is dismissed.

Bankruptcy Court Ruling:

  • The Bankruptcy was filed for an improper purpose.
  • In fact, the husband’s purpose for filing the bankruptcy is either to harass or delay the divorce proceedings.
  • At no point, did the husband take responsibility for the incomplete petition or apologize.
  • The filing of this petition is without merit.
  • The Bankruptcy Court deters misuse.
  • In the end, there is a $4,360.00 in Fees and Costs award.
  • Additionally, the Court awards $2,000 punitive damages against the Husband, in favor of his wife.
  • When the final settlement is reached, more equitable distribution money goes on the side of the wife.
  • You cannot use the law to harass your spouse with an involuntary bankruptcy petition.

Bankruptcy is meant for honest debtors and creditors.    The Bankruptcy Court frowns upon misuse of the bankruptcy code.

Before you file an involuntary bankruptcy petition, consult a Board Certified Bankruptcy Lawyer

Bankruptcy is a very specialized field of law.    Specific bankruptcy knowledge is required from an expert bankruptcy lawyer.

The Bankruptcy Court award of costs and punitive damages is correct.

Don’t think of taking revenge in Bankruptcy Court at any time; especially, not during a divorce.  This will hurt you in the end.

As a Board Certified Bankruptcy Lawyer, I do not permit misuse of the Bankruptcy Code.

Call me for a free Bankruptcy Consult.    Ralph A. Ferro, Jr., Esq. (201) 446-5904