Filing bankrupcy and then selling the items and keeping the money?
Shirley R asked:
My D.I.L. claimed bankrupcy in her maiden name after they got married. She incurred $ 35,000 worth oof debt. They told her that their house jointly would not be affected. Now 3 months after the fact she has left my son and she took all of the items that was listed on the charge cards and she is going to sell them and pocket the money. She had to account for these at the hearing.
Isn’t this considered stealing from the merchants? And why dosen’t she have to pay them before herself?
My D.I.L. claimed bankrupcy in her maiden name after they got married. She incurred $ 35,000 worth oof debt. They told her that their house jointly would not be affected. Now 3 months after the fact she has left my son and she took all of the items that was listed on the charge cards and she is going to sell them and pocket the money. She had to account for these at the hearing.
Isn’t this considered stealing from the merchants? And why dosen’t she have to pay them before herself?
If the bankruptcy is discharged whatever property she kept is hers. If the bankruptcy is not discharged, the creditors have claim to the items and/or proceeds. As for your son’s situation, he can sue her for half of the marital property but it’s not a bankruptcy issue any longer. That’s what “fresh start” means. Her credit is messed up but not her life or ties to creditors.
Comment by rayt721 — June 15, 2009 @ 10:27 pm
Sounds like your son made a poor choice in a wife. If none of the accounts were in his name then he does not have to worry about it. He will have to buy her out of the house (I know that stinks, but you will). Make sure she does not do anything in his/her name together. Might be a good idea for him to sign up for LifeLock.
She sounds like a real “prize catch”. Tell you son to look more carefully before his next one.
Comment by Randy P — June 16, 2009 @ 8:04 pm
If the debts listed were discharged then there’s not much to do.
The merchants will have written off the bad debt and WE all pay for that in the form of higher prices.
If the debt has not been discharged yet,you can let the Bankruptcy attorney and/or Trustee know.
Either way it’s best to seek legal advice on this matter.
Comment by James Q — June 18, 2009 @ 11:52 am
Credit Cards are UNSECURED debt, if they were discharged in BK there is nothing (legally) wrong with what she is doing in terms of the bankruptcy.
Now as for the Divorce it depends on the situation and where they live. These items MAY be considered community property and your son may be entitled to half. Hopefully he has a good attorney who should be made aware of this.
Comment by OC1999 — June 21, 2009 @ 11:50 pm
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Comment by Jennifer — June 22, 2009 @ 5:14 am