How will bankruptcy fraud affect my divorce? 16 Answers as of April 27, 2011

My husband owns an S corp in which I am a signer on some personal guaranteed loans. Bankrupsy is inevatable. He is now selling assets and hiding assets and he will not listen to me and really has no Idea in what he is doing and how it can effect us. He is a very strong willed man an refuses to listen to me. What can happen to me, us and family if I just do nothing? Do I have to divorce him in order to protect myself after 27 years of marriage?

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Reeves Law Firm, P.C.
Reeves Law Firm, P.C. | Roy L. Reeves
I have looked at this question and I think you need to ask a Bankruptcy lawyer your question first. Bankruptcy Fraud will have little affect on the divorce, other than the division of whatever assets are left and the request for disproportionate division due to the fraud but those are collateral issues. The real question you should be asking - and you need a bankruptcy attorney to answer this - is what affect does his fraud have on you in the bankruptcy that is inevitable.
Answer Applies to: Texas
Replied: 4/27/2011
Pisarra and Grist
Pisarra and Grist | David T. Pisarra
Probably. You should talk to a lawyer in person. Also you can read my books, A MAN'S GUIDE TO CHILD CUSTODY and A MAN'S GUIDE TO DIVORCE STRATEGY, available online and as an E-Book on my website.
Answer Applies to: California
Replied: 4/27/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Hiding assets is a felony. Do not sign any bankruptcy papers you do not believe are accurate and truthful. You do not have to go to jail with him.
Answer Applies to: California
Replied: 4/27/2011
John E. Kirchner, Attorney at Law
John E. Kirchner, Attorney at Law | John Kirchner
Unless you agree to file for bankruptcy jointly, the bankruptcy case will not involve you at all. So, your husband's fraud won't directly affect you. However, if he gets discharged from a debt that you are personally liable on, you will still be liable for the full amount of the debt. Only an attorney with a better understanding of the entire situation can give you an idea of what to expect if you do nothing, but you should make that decision only after speaking with your own attorney.
Answer Applies to: Colorado
Replied: 4/27/2011
Law Office of Curry & Westgate
Law Office of Curry & Westgate | Patrick Curry
File for divorce quickly and hire a family law attorney.
Answer Applies to: California
Replied: 4/27/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    You cannot sign documents that you know are false or testify under oath and lie. If you sign documents that you know are wrong or if you testify under oath either in a Court of Law or other Proceeding you are going to be liable as if you committed the acts that your husband is doing.

    You should seek counsel from an attorney (one that your husband has not used) to determine what course of action you should take.
    Answer Applies to: New Hampshire
    Replied: 4/27/2011
    Beaulier Law Office
    Beaulier Law Office | Maury Beaulier
    Your question is a many faceted one. Certainly, will ful bankruptcy fraud may result in findings of contempt or, worse, criminal prosecution. Whether that occurs would depend on the scope and nature of the alleged fraud.
    Answer Applies to: Minnesota
    Replied: 4/27/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    That's definitely not a question someone can answer over the internet. You need to proceed very carefully and put on your best thinking.
    Answer Applies to: Virginia
    Replied: 4/27/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    If you and/or your husband hasn't filed for bankruptcy, then you haven't committed bankruptcy fraud. If you are looking for an attorney for bankruptcy or family law, and you are in my area, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 4/26/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Hiding, transferring or giving away assets in anticipation of bankruptcy gives rise to several problems. First, a trustee in bankruptcy can set aside transfers. Second, a discharge of debts could be jeopardized. Third, creditors could file nondischargeability lawsuits in the bankruptcy if there has been fraud.
    Answer Applies to: California
    Replied: 4/26/2011
    Michael Rose Attorney at Law
    Michael Rose Attorney at Law | Michael Rose
    I would worry about the fraud. You signed for loans. Ask the bankruptcy attorney. It is hard to get an answer to what can happen to you. Sit down with an attorney and have them look at the situation and then maybe you will get an answer. I don't know if your answer can be found on the Internet. You need help.
    Answer Applies to: California
    Replied: 4/26/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You should not file bankruptcy jointly with your husband if he is not telling the truth in the bankruptcy petition because you will have to sign it also under penalty of perjury and you will be held responsible for bankruptcy fraud (which is a criminal matter and you can be denied the discharge). You have the right to file bankruptcy on your own if necessary although obviously that will increase the cost of the case.

    If you do nothing you might be sued by the creditors at some point for the debts but wait if you can until your husband's case is completed and then go see your own bankruptcy attorney.
    Answer Applies to: California
    Replied: 4/26/2011
    Michael Anthony Wing, P.C.
    Michael Anthony Wing, P.C. | Michael Anthony Wing
    That's a lot of issues, and I don't practice bankruptcy law. However, I don't see that divorce would stop your liability where you have signed as personal guarantor. If liability is the sole concern, I wouldn't think divorce is the answer. However, it might substitute as a vehicle to separate your assets, somewhat legitimately, where you may be able to use the divorce to illustrate the difference between your personal estate and his. I would think you both need to talk to a bankruptcy lawyer and then to a divorce lawyer if it sounds like it could help salvage some of your joint estate. It might be that moving assets prior to the bankruptcy may turn out to be a legal move. I just don't know, but it does kind of sound like something that your bankruptcy lawyer would not be able to tell you to do before you file for bankruptcy protection, but may be able to use to your advantage when you do file. Like one of those, "it's easier to say I'm sorry than ask permission..." stay well.
    Answer Applies to: Alabama
    Replied: 4/27/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    It depends on whether you file bankruptcy jointly with him or individually without him. If you file personal bankruptcy, generally the corporate assets do not come in. I strongly encourage you consult with an attorney on this matter. Bankruptcy Fraud is a federal crime and a conviction will likely land you in jail.
    Answer Applies to: California
    Replied: 4/26/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Have him consult experienced bankruptcy counsel as soon a possible.
    Answer Applies to: California
    Replied: 4/27/2011
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