bankruptcy to avoid equalization payment

[amin99]

Just one day after I made a very fair offer to settle, I have been informed that my ex is in the process of filing for bankruptsy. I'm not sure what stage he is at but I think it's something that they have just come up with to avoid an equalization payment to me. He has racked up insane amounts of debt post separation.

I am worried that he will not have to pay an equalization payment if he declared bankruptcy.

My research seems to indicate that if the equalization is ordered before his bankruptsy is finalized the debt he owed to me will be cancelled.

Alternatively, if the equalization is ordered after the bankruptsy is finalized then he may have to pay me.

He also wants to reduce his child support but I am quite sure that this is exempt from bankruptcy.

THere is also a claim for joint custody, although I have had sole custody since separtion as well as an interim court order. I think this is more of a scare tactic....status quo is in effect as far as I'm concerned.

There is a settlement conference scheduled for next month.

Any help would be appreciated.

[dadtotheend]

I'm not sure what stage he is at but I think it's something that they have just come up with to avoid an equalization payment to me. He has racked up insane amounts of debt post separation.

It must be just about you and not the insane amount of debt.

[NBDad]

Can't bankrupt out of child support, COULD try to make a case for undue hardship, but that would be very difficult if you wipe pretty much any debt you have out.

He'd be smarter to claim undue hardship, get his child support reduced, get an equalization payment ordered, and THEN declare bankruptcy.

If he's doing this to try and screw you as you suspect, he's going about it all wrong. The very order you are listing things would preclude this being a malicious action.

[amin99]

I'm not sure how to take that response....I'm sure the bankruptcy has a lot to with avoiding responsibility.

[amin99]

NBDad,

Thanks for your helpful response. I'm sure it's a malicious action to avoid paying me. How do you think I should handle this?

[dadtotheend]

What you have researched vis a vis the equalization payment makes sense to me. Don't forget that he loses whatever assets he had as a result of the bankruptcy and he will have a great deal of difficulty obtaining credit for the next many years.

Those consequences may or not mean much to hiim, but I certainly wouldn't want that hanging over my head. If it's a malicious action to avoid paying you there's not much you can except realize that you now know what value he places on his character.

How much does he owe you in equalization?

[billm]

...
THere is also a claim for joint custody, although I have had sole custody since separtion as well as an interim court order. I think this is more of a scare tactic....status quo is in effect as far as I'm concerned...

So do you think he does now want to raise your children equally with you, or do you think that if you offered to him, he would gladly take it?

Forget the 'status quo' bs - you've been (presumably) raising the children together longer than you've been apart and there are many years ahead - the children deserve to be raised equally by both of their parents.

[limer]

So he owes you an equalization payment and support. He is paying child support. He wishes joint custody, and you have "defacto custody". It seems to me like your gloating a bit of your power position within the divorce. He wants joint custody which would likely result in a modification quite posssibly to that support order. I'd be curious to know what both your wages are? More to the story then you are telling I think?

[logicalvelocity]

I think I would be advising the bankruptcy trustee of the net equalization.

[amin99]

Dadtotheend,

Just under 20K.

[amin99]

logicalvelocity

Didn't think of that, thanks for the tip.

[amin99]

Honestly I don't think he is interested in raising the children with me. The court has ordered a visitation schedule which he frequently cancels. Furthermore when the kids are sick he will send them back home because he doesn't want to deal with it.

[amin99]

Limer,

You sound bitter. You must have gone through something terrible with your divorce, that is strking a chord with my quest for information. Although I feel sorry for you, you shouldn't be on this forum insulting people you don't know.

[dadtotheend]

He didn't insult you, he suggested that there is more to it.

$20K is a sizable number but it isn't going to change your life forever.

How much do you each of you earn?

[amin99]

Dadtotheend,

We both earn around 50K. He's pays support on 40K, because he didn't disclose his true income.