Wife Purchased property while in bankruptcy

[Nick P]

What is the name of your state? Ohio

I'm currently getting divorced and was ordered to file a joint chapter 7 bankruptcy with my spouse. I was ordered to pay for the chapter 7 bankruptcy. We filed on 8/20/2004. Our divorce is not final and we have not lived together for 13 months.

During the bankruptcy and prior to the creditor meeting, my spouse purchased a mobile home for $6,500.00 in September 2004. She gave the money to her sister to purchase the mobile home for her. My wife stated on the Schedule B. Personal Property that she only had $150.00 in her bank account. In October, 2004, my spouse filed a Notice of intent to relocate within the county she resides with the Domestic Relations court to the mobile home park. We have two children together and I am currently paying $950.00 per month + fees in child support.

I was prompted to investigate the mobile home purchase after our creditor meeting on 11/5/2004 when my spouse asked our attorney if she could now purchase a mobile home.

I believe my spouse drained our joint checking account prior to seeing the bankruptcy attorney and held on to the money to avoid losing the money and to purchase the mobile home.

I called the mobile home community management and they said that only an owner can live in the community and mobile homes can not be rented. I should mention her sister also has a mobile home in the same community therefore cannot live in both mobile homes at the same time. I asked the management then why can the same person own two mobile homes within the community? They responded that my sister-in-law is listed as a joint owner with her daughter and gave my spouse's name. I informed them the name they have listed as a co-owner is not my sister-in-law's daughter but rather her sister. I informed them that I called the county auditor and they stated that my sister-in-law was listed as the only owner. I believe my spouse and sister-in-law intentions are to transfer the property after the bankruptcy is closed. She failed to disclose the money and the mobile home purchase to the bankruptcy trustee. My spouse has intentionally hidden assets. I should also mention that she has failed to disclose her 401K.

In my mind, my spouse has comitted fraud. Will I be held liable if the bankruptcy trustee finds out? Will my bankruptcy be dismissed or will I be excused and allowed to go forward with my bankruptcy since we filed a joint bankruptcy? Should I report to the bankruptcy trustee my findings? Will they check my spouse's bank records? How will they investigate the matter and should I report it? What are the penalties?
Thank you.
Nick

 

[anabanana]

You better call the trustee and tell what you know, Nick. You want to cover your heinie, because she's as fraudulent as the day is long, from the sound of things, and she's going to get that nasty all over you. On the other hand, your kids could be affected by any fallout from this. Do you have a lawyer? You better get one. I'd go for a separate filing if I was you. And you better tell your wife you're on to her. Are you two amicable, generally? Remember that you still are going to have children to share, so you don't want to be vindictive or go out of your way to get her busted, because that's bad for them, but you had better cover your tail, brother. Whew. What a mess.

 

[pgs430]

If you have seperate divorce attorneys, I would alert your attorney to what you believe you've discovered and then let him decide if its usefull. Otherwise I would keep quiet unless you are accused of something and deposed.

Remember, anything negative that occurs will have the largest impact on your children. Do you want the mobile home that they are residing in to disappear? Create the most stable environment you can for your kids. This divorce will have an impact on your kids for many years to come. Been there, done that.

 

[Ladynred]

Its not the worth the risk of HIM being accused of bankruptcy fraud by keeping his mouth shut because his STBX pulled a fast one. She HAS committed fraud and he needs to extricate himself from this bankruptcy if at all possible AND he needs to tell the Trustee. Its obvious she knew it was all wrong by the way she tried to hide the transaction. HER lawyer also needs to be told so the lawyer isn't caught with egg on his/her face.

Its a mess, but she is definitely in the wrong and if its discovered by the Trustee, it WILL NOT go well for her.

 

[InsulinRules]

If I could inject a bit of "whoa up there", please note that we have ALOT of beliefs posted as facts by Nick.

During the bankruptcy and prior to the creditor meeting, my spouse purchased a mobile home for $6,500.00 in September 2004. She gave the money to her sister to purchase the mobile home for her.

and

I believe my spouse drained our joint checking account prior to seeing the bankruptcy attorney and held on to the money to avoid losing the money and to purchase the mobile home.

But here's how the paper trail looks to me:
1) Sister has a new (used) mobile home.
2)Sister is listed as sole owner on county records
2) Wife is moving to new mobile home in restricted park that prevents renters.
3) Sister lists wife as "daughter" and "joint owner" WITH the PARK; that doesn't change legal ownership of the MH, it does breach the ethicity of the park's contract. A smarter thing for the sister to do is to just say "I own two mobile homes. My sister is living in the second as part of my household, not as a renter."
4)Nick states that the joint account was drained. Fine. Nick is on the account and it should be NO PROBLEM for him to get the bank statement showing the $6500.00 withdrawal. Heck, if I was missing $6500.00 from my bank account I'd be over all the place looking for it. Here's a clue, Nick-this is a joint BK...you're responsible for accounting for that cash just as much as your wife is. Since you apparently didn't know she took it before you filed for BK, did you list the $6500 on your Sch B? While it's possible that your wife removed it in small amounts over time, it should still be fairly traceable.

Something stinks about this....

What this could be is a great sister who bought a second home in her name with her money, is going to sell it to her newly divorced sister after the divorce and BK under some terms they are unwilling to discuss to a bitter vindictive ex-husband who is missing, unaccounted for, and did not list on his Sch B a $6500 bank account that he thought he had.

While lots of people try to scam the system, other people look for honest helpers to dig traps.

 

[Nick P]

Wife purchase mobile home during bankruptcy

Insulinrules,

The $6,500.00 was in a joint checking account & she removed the money and set up her own bank account. She also had the check book and ATM cards at the time of our separation and closed the account soon after we split. My sister-in-law is poor and in no way could have given her the money. Also, you cannot rent or have two families in the same park according to the MH park.

As far as my children 16 & 17 year old girls. I have not seen them in the last year. She has them brainwashed and my last phone call to them last week was not a good one. My 17 year old stated "We don't consider you to be our father anymore". I ask everytime I call to pick them up for vistitation and they are always busy. I have temporary orders that allows for visitation. My wife tells me most of the time she has other plans for the girls or when I call they are not at home. My wife is currently in contempt for not allowing visititation. My 17 year old speaks with my mother and told her that because of my military background (the past last 18 years) that I have to many rules and her mother lets them do as they please and they rather live with their mother. That's fine if they want to live with her. I've been out to sea most of their lives and can understand that. I still want to see my daughters and be part of their lives.

I've learned alot of things about my wife over the past few years. Mostly not good. She and her sister caused alot of trouble in bars, with the neighbors, and she has been arrested in the past. So I know my soon to be ex-wife is up to no good.

I also spoke to my wife last week and she admitted the purchase and told me good luck with my discovery.

I walked away with no property in this divorce and she is the vindictive spouse. My own children told me that she planned the divorce over two years ago and has hidden money from me. All I want is to see my children, get the divorce, and bankruptcy over with.

Look as far as I'm concerned, she has broken the law. I just don't want my bankruptcy dismissed because of her actions.

 

[Nick P]

Want Purchase Trailer during Bankruptcy

Just thought I'd let everyone know that I wrote to both of my attorneys today (divorce & bankruptcy) and provided them with documented proof of the purchase. I'll wait to see what happens. Talked to wife again, I let her know I've informed both attorneys. She just laughed and said I'd never see nor here from my children again. I told her to wake-up, she is in contempt and I'll probably get the kids away once she's found guilty and serving the 5 year prison term and $500,000.00 fines.

Wow... will I be glad when this is over and my kids are safe from her crazy @#$! I can't believe she thinks she is so far above everyone and the law. This woman is so damn crazy, she had my mother arrested. My mother hasn't seen her in 2 years and my wife recently made a complaint and filed charges my mother hit her in July. Now my mother has to hire an attorney. My mother doesn't even talk to her! God! What are my children living with?

 

[Who's Liable?]

good luck in all this... keep us posted as I know I would like to see what happens...

 

[Nick P]

Wife purchased mobile home during bankruptcy

Well... I heard back from our bankruptcy attorney. He said that she probably would be able to keep the trailer unless I had concrete proof that she gave the money to her sister. He spoke with my wife and her sister. My wifes sister said she purchased the trailer for her sister to provide a home for her and she is just a concerned sister who loves her sister. My attorney said that if the trustee finds out about the money in the bank and it was used to purchase the trailer, then I would be held harmless because I reported it to him (bankruptcy attorney).

I feel our bankruptcy attorney just doesn't want to bother with it. So, I'll hang onto my letter and proof that I mailed it just in case.

Now, my wife is saying that I have income from a property I owned and sold on a land contract back in 1997. The property was paid off in December 2003. This is her way of trying to get back at me. This property was sold well before we filed bankruptcy and will not affect the bankruptcy outcome. She's up to her old tricks.

I also copied my divorce lawyer on the letter I sent the bankruptcy attorney and asked several questions regarding my divorce. I haven't heard from him. As a matter of fact, I have spoken or seen my divorce attorney since my last court appearance on June 7, 2004. He is as unless as fire on a popsicle.

Thanks for all comments.
Nick