Bankruptcy Laws

[The Nature Boy 4,224]

I got a buddy that is/was married to a real loser of a woman.She is hot beyond measure but has no soul. She just got back from a two month trip to the Philippines, when she gets back she rolls up to the house in a new car. She tells him it is cheaper payment than her SUV which she is tired of, and she is going to file Bankruptcy and let the SUV go back.

That was the straw. They have only been married 1.75 years. He files for divorce and ask her to leave.Of course she will not live, even though he offered her 2500 to get out..They have no kids,no debt together or assets.She wants a payday from him.

Anyway I digress.We have a group of Phil-Am couples that eat every Sunday night. She decides to drop by.She tells some of the girls she went shopping that day and bought over 500 dollars worth of stuff. She then explained since she is about to file bankruptcy it will be erased.

Anyway, I think this girl is a soulless leech and don't care for her. My question is .

Can a person really go on a 2 month vacation, buy jewelry, clothes etc on Credit Cards then file bankruptcy a few months later and get it erased.

That sounds insane.I hope she gets slapped with Karma.

[Protocol417 161]

Possibly.

It depends on a lot of factors, but when you file for bankruptcy, your creditor will likely comb through your debt, especially recent debt, and try to exempt themselves from releasing as much of it as possible (read: as the court will allow). If you have a recent unusual uptick in your spending habits, or if the debt is accumulated too closely to when you file for bankruptcy, there is a good chance that the recent debt will NOT be released and you will end up still owing it.

So, if she spent $500 and put it on her credit card, the creditor likely won't bother with that because it's such a "small" amount (especially if it's "necessities" like clothing... they would have a stronger case with something like a TV or computer or other such "toy"), BUT if she puts a huge vacation (several thousand dollars) on there, then yeah, the court might grant the creditors wish for this to be set aside from the bankruptcy proceedings and she'll still need to pay it back.

[The Nature Boy 4,224]

Possibly.

It depends on a lot of factors, but when you file for bankruptcy, your creditor will likely comb through your debt, especially recent debt, and try to exempt themselves from releasing as much of it as possible (read: as the court will allow). If you have a recent unusual uptick in your spending habits, or if the debt is accumulated too closely to when you file for bankruptcy, there is a good chance that the recent debt will NOT be released and you will end up still owing it.

So, if she spent $500 and put it on her credit card, the creditor likely won't bother with that because it's such a "small" amount (especially if it's "necessities" like clothing... they would have a stronger case with something like a TV or computer or other such "toy"), BUT if she puts a huge vacation (several thousand dollars) on there, then yeah, the court might grant the creditors wish for this to be set aside from the bankruptcy proceedings and she'll still need to pay it back.

I was told she racked up over 5K on her vacation. Just hope she does not get away with it

[Protocol417 161]

I was told she racked up over 5K on her vacation. Just hope she does not get away with it

Unless she has very low income (or she has a really good lawyer) and she waited a while before filing, I'm guessing they'll exempt that debt from the bankruptcy and she'll end up paying it.

[Umka36 781]

You can always report the bankruptcy fraud, if that's what she is doing.

http://www.justice.gov/ust/eo/fraud/index.htm

[Dave-n-Oksana 49]

It sounds like this woman is lacking a lot of information about how the American Bankruptcy system works.

Based on the information that you have stated, it is highly unlikely that a bankruptcy judge is going to grant her bankruptcy. As stated this is bankruptcy fraud, and the judges are usually very astute in indentifying this. Also unless she used both her's and her husband's income to secure the loan, the court will see that she is financially secure enough to make her payments, and with a divorce in process, no bankruptcy lawyer is going to take her case until it is discharged (and they are fully paid).

Also another misconception that I believe she is having is that once she get's her bankruptcy that she will be able to still afford the life she is living. A bankruptcy is meant to release a person from their debts. It does not give a clean slate (credit wise) and as long as that bankruptcy is on her credit report, she will find it hard to get any credit at a decent interest rate from a reputable debtor.

Karma is about to have a field day on her dreams.

Edited October 14, 2013 by Dave-n-Oksana

[The Nature Boy 4,224]

It sounds like this woman is lacking a lot of information about how the American Bankruptcy system works.

Based on the information that you have stated, it is highly unlikely that a bankruptcy judge is going to grant her bankruptcy. As stated this is bankruptcy fraud, and the judges are usually very astute in indentifying this. Also unless she used both her's and her husband's income to secure the loan, the court will see that she is financially secure enough to make her payments, and with a divorce in process, no bankruptcy lawyer is going to take her case until it is discharged (and they are fully paid).

Also another misconception that I believe she is having is that once she get's her bankruptcy that she will be able to still afford the life she is living. A bankruptcy is meant to release a person from their debts. It does not give a clean slate (credit wise) and as long as that bankruptcy is on her credit report, she will find it hard to get any credit at a decent interest rate from a reputable debtor.

Karma is about to have a field day on her dreams.

Thank you all for your replies.. I pretty much told her all this. I also told that with under 2 years of marriage, no kids, no martial debt, no material assets, and he owns the house no judge is going to give her a penny. Her "friend told her he owes her 1000's. The man is a good guy. He offered her 2500 to move and she refused, yet is on FB bragging about her new BF..I hate people like that, and i want to help the guy all I can.

[Darnell 8,478]

Well, stop talking to that wife, first and foremost.

There's other legal protections he can put in place, so the creditors don't come after him,

however, bear this in mind - if she's a recent immigrant, is quite possible the credit card accounts were based on HIS credit, somehow.

If that's the case, he'll need to contact the credit card companies and cancel the cards, if he's there as a joint-account owner.

When he first files the divorce paperwork, include an order of removal from the domicile - the sherrifs will show up and remove her.

Edited October 14, 2013 by Darnell