bankrupt ex

[sherbert]

My ex and I made a settlement agreement inwhich he'd pay me a certain amount of money in a lump sum within 9 months. After that time, he did not have the $ and we signed another agreement that he'd pay me within another 9 months with interest. He has assets and home equity that would easily cover the amount he owes me, but he's gotten into some financial hot water and is threatening to file bankruptcy. If he does, will that wipe out my settlement money or will I be first in line to receive procedes from the sale of his assets? In the past 18 months he has bought several high dollar items (cars, diamonds, commercial property).

 

[dorenephilpot]

Depends on how the court classifies it.

It it's considered alimony, maintenance or child support, then he can't get out of it.

If he owns a lot of expensive personal property, he won't be able to file a Chapter 7 without giving some of that property to the trustee for distribution to his creditors.

If he tries to hide the property from the trustee to keep from having to turn it over, he will be committing bankruptcy fraud, and his case will be tossed and he could be criminally prosecuted.

If he fils a 13, you will get some of your money, regardless of how it's classified.

Once he files, consult w/an attorney to discuss your options, which will vary depending on the facts of your case, property involved and the Chapter he's filing.

Most will do an initial consultation for free.

Best of luck to you....