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  1. #1
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    Default Re: Banrkuptcy Due to Debt Incurred by One Spouse

    Even if the plan is for your husband to file bankruptcy individually, not for you and he to file as a married couple, the extent to which your income or assets in your name could potentially be reached to satisfy his debts is something that he needs to discuss with his bankruptcy lawyer.

    Bankruptcy is not supposed to be a shell game, in which you shift cash from him to you, and shift debt from you to him, thereby minimizing the recovery available to creditors. Attempting such shifts can be a dangerous game, as a mistake can cause a transfer to be deemed fraudulent and cost you your ability to exempt it from the bankrupt estate.

  2. #2
    Join Date
    Oct 2006
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    16,474

    Default Re: Banrkuptcy Due to Debt Incurred by One Spouse

    Quote Quoting Mr. Knowitall
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    Even if the plan is for your husband to file bankruptcy individually, not for you and he to file as a married couple, the extent to which your income or assets in your name could potentially be reached to satisfy his debts is something that he needs to discuss with his bankruptcy lawyer.

    Bankruptcy is not supposed to be a shell game, in which you shift cash from him to you, and shift debt from you to him, thereby minimizing the recovery available to creditors. Attempting such shifts can be a dangerous game, as a mistake can cause a transfer to be deemed fraudulent and cost you your ability to exempt it from the bankrupt estate.
    While that is true, its neither a shell game nor illegal to make sure that the children's assets and the other spouses separate assets (the settlement) are kept separate.

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