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Ex-Wife Sentenced for Not Reporting Divorce Settlement $

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A Debtor was sentenced to 120 days of home confinement for the crime of making a false declaration.  In addition, the Debtor must also service a 1-year term of court supervision.   The ex-wife (Debtor) filed a Chapter 7 Bankruptcy Petition seeking to discharge $22,782 in Debt.   Two months later, the Debtor received $108,400 in income as part of a divorce settlement.   The money came from her ex-husband’s IRA and she did not report this income.

The Debtor was also denied a discharge.  You must be completely truthful when you ask the government for bankruptcy relief.