Legal Question in Bankruptcy in Iowa

My brother is in a mess financially and he's asking me for advice and I don't know what to tell him. He and his wife had filed for bankruptcy 1 year ago but because their adopted daughter is in a private school, they had to file Chapter 13 and pay back all the debt. His wife has lots of health issues and they can barely keep up with her prescriptions each month and she has lots of credit card debt. Well something happened with the Chapter 13 - the lawyer said that they didn't get a tax return filed and to him in time (which they claim they gave to him months prior), so he said the Bankruptcy is now null and void and all the creditors are coming after them. They are unable to file for Chapter 7, which is what they so desperately need, but they are being told they cannot because of their incomes. So now they think it would be wise to just divorce and then she can file Chapter 7 on her debts and my brother can pay off the small amount of debt he has. But basically they think this will solve some of their problems. I always thought that as a couple your debts are both of your debts but I could be wrong. (He thinks her credit cards are her responsibility cause they only have her name on them, and the same with his couple small cc's). I can't believe a judge would allow her to file and then not come after him. My brother is very gullible and I'm not sure if he's being lead astray by his wife or not. I can see him being stuck with 1/2 of all the bills, child support AND then divorced on top of it. Can you help me to understand the law and what recourse he has cause I don't want him to get into any further trouble...he has enough right now and I'm worried for his health and welfare. My brother is such a good sole, but he just makes such bad decisions because he listens to the wrong people. Thanks for any help you can give me.


Asked on 1/09/13, 8:58 am

1 Answer from Attorneys
Stephen Lombardi Lombardi Law Firm

To answer this question correctly it would take more than just responding to this Q&A. There is much more involved. One consideration has much to do with your brother and sister-in-law and the choices they make and would want to make. This is not really my area of practice, but I know enough to say, go see a bankruptcy and/or consumer debt attorney and be ready to pay for the advice.

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Answered on 1/10/13, 9:19 am


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