66 East Main Street, 3rd Floor Little Falls, NJ 07424

Dr’s Wife Diverts Funds to Herself and Files Bankruptcy

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Background:

  • Doctor’s Wife was the Manager of his medical practice office.
  • Wife over time diverted approximately $340 thousand for her own use and in her own accounts.
  • This was community property and her husband (Doctor) trusted her.
  • Judgment of Divorce was eventually filed.
  • Husband became aware of the “recordkeeping and banking practices” of his wife.
  • Superior Court found that the wife owed her husband $274,605 plus interest and attorney’s fees.
  • Ex-Wife files for bankruptcy so she would not have to pay this money back.

Outcome:

  • State Court judgment was excepted from discharge; could not be relitigated in Bankruptcy Court.
  • Ex-wife required to pay back her ex-husband and could not defraud the Doctor

When you steal from someone, even a family member, bankruptcy court is not the place to go for relief.