Legal Question in Bankruptcy in North Carolina
My wife and I have seperated. We divided our liquid assets down the middle and I'm paying her child support and some living expenses. For many reasons I'll be filing bankruptcy within the next 6-12 months. Will they take my Wifes money?
1 Answer from Attorneys
The bankruptcy court will recognize a legitimate property separation agreement that was confirmed by a court order. The trustee may challenge an agreement which appears to be made with the intent to shelter assets and keep them from creditors. If the agreement is one sided and your ex-spouse ends up with the assets and you end up with the debt, the trustee may take action. On the other hand, if you intend to discharge debts for which your ex-wife is an obligor, she could object to the discharge of those debts because the creditors could come after her and deprive her of her divorce benefits. Your bankruptcy lawyer will evaluate what relief you are entitled to and what your risk is regarding objections.