Cheating out of the BAPCPA.

[optimistic1]

I heard a story today on the radio, about how couples are so desperate to file a bankruptcy.


The story highlighted a divorce attorney of all people, that stated that the married couple sought a divorce, and then had only 1 person file for bankruptcy, to rid themselves of the debt. And then re-married after the one was discharged of the debt.

I couldnt believe what I heard, like the courts couldnt figure it out?

My only guess is they did so that they could cheat the Means test on the income section.

Although they stated, that it was so one persons credit report would be clean of the BK.

What I really cant believe is that the lawyer would actually go on a radio show and say it, like they actually knew about it.

Anyway, so if your looking to cheat and possibly get caught and go to prison, then here is your ticket.

Or maybe you will slip through the cracks like these people did.

[brokenbuthealed]

It doesn't really seem like that would work completely, because if the debts were joint, married or not, if only one person files the other person can still be held liable for them.

[optimistic1]

Thats what I was telling my friend from work, but, in divorce court, he said that one spouse can just volunteer to take all the debt. Somehow in a divorce, the debt must be divided up between the two.

I don't know, but in a case where say, only the wife had the mass majority of the debt, and she was stuck with it in the divorce proceedings.

And under the Means test, when married they couldnt qualify for a Ch. 7, but when they divorce, all of the sudden she now qualifies, then it would make sense.

And if it was in a community property state, depending on the divorce proceedings of course, the other spouse, upon divorcing the other, even if it wasnt joint debt, the creditors have the right to collect from them, but they probably just through it in the stack of discharged and went on to some others.

[HHM]

Actually, this can be accomplished in many states by a simply finacial seperation (which is like a divorce, but does not dissolve the marriage).

Frankly, such a plan would only work if the BK filing spouse has most of the debt in his/her name. If the debt's are joint, such a plan would not work. The divorce decree DOES NOT bind the creditors. Which is why nearly 1/3 of all BK's are related to a recent divorce.

I heard of one couple recently where, it actually made more sense for them to get married and then file BK. They had been together for a few years, bought a house together, but are now facing BK. It makes more financial sense for them to get married and do a joint BK

[optimistic1]

What a loophole this is. I contemplated this months ago, I thought, oh yeah you want to include my income in this stupid means test. Ill just get divorced then, or be legally seperated, then you cant include it. Looks like it actually works.

[HHM]

What a loophole this is. I contemplated this months ago, I thought, oh yeah you want to include my income in this stupid means test. Ill just get divorced then, or be legally seperated, then you cant include it. Looks like it actually works.

Well, the non-filing spouse would have to move out as well.

[2Bshinyandnew]

Actually, this can be accomplished in many states by a simply finacial seperation (which is like a divorce, but does not dissolve the marriage).

Frankly, such a plan would only work if the BK filing spouse has most of the debt in his/her name. If the debt's are joint, such a plan would not work. The divorce decree DOES NOT bind the creditors. Which is why nearly 1/3 of all BK's are related to a recent divorce.

I heard of one couple recently where, it actually made more sense for them to get married and then file BK. They had been together for a few years, bought a house together, but are now facing BK. It makes more financial sense for them to get married and do a joint BK

That plan sure wouldn't have worked for me! My soon to be ex filed a CH7 in November. We have been separated for 2 1/2 years and he filed without me. BofA is already hounding me for the joint debt that he filed on. We knew this would happen though. I was a SAHM for the majority of our 18 year marriage so they are barking up the wrong tree Even if my soon to ex and I agreed he would take on 100% of the marital debt, the creditors would still (and most definitely ARE!) coming after me for it, all of it.

For the means test, after child support and alimony, my soon to be ex easily fell below median in Florida. I never thought I would hear him say "thank g-d for Alimony! LOL!

We had actually considered filing together, but the house/deed is in my name only and in our situation it was more beneficial for us to each file alone, he using Florida's $4000 personal property exemption available to filers who are not claiming, or are abandoning their homestead, so he could keep his car. I will eventually file, once one of the creditors sues me or some other situation arises that makes filing more urgent. I will be able to use Florida's unlimited homestead exemption.

Yea, that 1/3 of all BK being related to divorce...so true. We sure didn't plan it though

[optimistic1]

Good for you, considering you can only file a Ch. 7 every 8 years. Only use it when you absolutely have to.

[CatsInTrouble]

funny thing is, I kow two spouses who divorced and remarried and it was on the up and up. In one case they made up a 6 months later, in another maybe about 2 years.... so not total scam all around I suppose...I mean, the radio chick admitted it, I'm just saying, hows a judge to know the truth?

[optimistic1]

Thats what I was telling myself, how the hell would they know, although, you are put under oath. And if they found out, get your prison boots on.