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Discharge, Divorce, and Bankruptcy

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  • 09-03-2008, 07:53 PM
    hubdaddy
    Discharge, Divorce, and Bankruptcy
    My question involves bankruptcy in the state of: Michigan/Florida

    My dirt bag ex sold his company for over 27 million 6 years ago, hid millions over seas, lost millions in the stock market, and recently renigged on a settlement agreement which called for him to pay off the balance on the mortage on my home within 10 years of our agreement.

    He has an industrial building that he has recently forclosed on (he owes 3 million). He keeps asking for 6 months relief of his obligation to pay my mortage and keeps stalling on a new payment agreement that would include new callateral (he fixed the documents that originally had me on the deed on the building he is now foreclosing on, and took me off the deed with a slick move just days after the agreement was filed, All these years I thought I was on the deed and meanwhile he was refinancing multiple times on this property)

    I think he is stalling because he wants to see if the bank will pursue him vigorously in regards to this foreclosure. If yes, he will file for bankruptcy and attempt to include his debt to me in his discharge motion.

    What does the law say about divorce agreements, domestic support obligations, and banruptcy claims? Could he get the mortage obligation discharged? What recourse would/do I have?

    Is there anything I can do in the meantime while he is waiting for the banks decision to pursue his foreclosure? Getting a judement is a no brainer as the settlement agreement is solid and very clear. He owes me this money and I would/could definitely win a judgement. I'm trying to avoid that though in hopes of getting a new agreement, with solid collateral (this time) so that if he renigs on the agreement again, I can claim the collateral. All I keep hearing is how hard it is to collect on a judgement. Is that true? If banruptcy is a definite for him, shouldn't I just get the judgement asap and be first in line? Or is it truly a pain to collect on a judgement?

    Thanks for any advice and help that can be offered. I can't believe I'm in this position.
  • 09-05-2008, 07:10 AM
    Mr. Knowitall
    Re: Discharge, Divorce, and Bankruptcy
    Under current law, the provisions of a divorce judgment for property division and support are not ordinarily dischargeable in bankruptcy. He could discharge his obligation on a mortgage to the bank, but not any associated obligation he has to you (e.g., to reimburse you for payments you have to cover).

    I can't imagine you've been through this without involving a divorce lawyer, so talk to your lawyer about possible remedies or tracking assets you might be able to attach.
  • 09-05-2008, 09:22 AM
    hubdaddy
    Re: Discharge, Divorce, and Bankruptcy
    Thank you so much Mr. Knowitall,

    That makes me feel so much better, as the mortage is in my name only. He had been making the payments directly to the bank (direct deposit) instead of to me as it was easier. Rather than keep the house we lived in, the agreement said he was to give me so much towards a house. So if I understand you correctly, this is good because the mortage does not have his name on it and he therefore does not have an obligation to the bank, but rather to me.

    Yes, a divorce lawyer is involved. She keeps trying to make a new arrangement, but this time with solid collateral (his homestead condo in Florida which has 2.6 million in equity in it). If he won't agree to this, then we know he does not intend to pay off his debt to me and I will collect the judgement. Her concern is that collecting a judgement is a real pain and she's trying to avoid that for me by getting this new agreement. You brought up a good point about finding his assets. Why can't my attorney petition his financial records and see where he is hiding stuff? Or is that not typically done in divorce court, only in banruptcy court? And how hard is it to find hidden accounts, assets overseas? Can't that all be tracked easily?

    What strategy do you think my ex could be mulling over? Why the waiting game? Is it to my benefit to get this judgement before he files for banruptcy? thanks so much for the assistance and support. You are greatly appreciated!
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