Friday, February 5, 2016

DIVORCE SETTLEMENTS UPSET BY BANKRUPTCY?


Yes it can happen. I attended a terrific CLE yesterday at the Suffolk County Bar Association. The fact is that the interests of a bankruptcy court, the trustee appointed, the creditors of the debtor, etc. may conflict with the interests of one or both parties in a matrimonial action.

For those in a matrimonial cases, whether resolved by settlement or action, some financial aspects of the divorce may be disrupted or, at least further litigated, when one of the spouses file for bankruptcy - and different rules apply for Chapter 7 liquidations and Chapter 13 reorganizations.

As I have said before, if marriage is supposed to be for life...divorce can be eternal.

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