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Reveal Your Intention to File Bankruptcy During Divorce

Posted By admin || 5-Aug-2009

Bankruptcy and divorce can become very complicated, leaving some debtors unable to discharge certain debts if they fail to work with experienced and competent counsel. One of the reoccurring issues related to bankruptcy and divorce is the obligation of debtors to reveal their intentions to file bankruptcy to their soon-to-be ex-spouse. In the 2008 Texas bankruptcy case of Wendt, the bankruptcy court denied the debtor a discharge of his alimony obligations because he had failed to reveal to his ex-spouse his intentions to file bankruptcy.

The bankruptcy court found that Mr. Wendt entered into alimony negotiations with the full knowledge that he was planning to file bankruptcy and discharge those obligations. The court also found that because the debtor knew that he would seek to discharge his alimony obligations in bankruptcy, he was acting fraudulently when he agreed to the alimony payments.

For debtors who are considering bankruptcy after a divorce, make sure that you thoroughly explore your options and obligations with your bankruptcy attorney. Failing to handle bankruptcy cases that involve an ex-spouse could cost you financially.

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