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Ex personally bankrupt@time of separation.Can he profit on Mat home after the fact?

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  • Ex personally bankrupt@time of separation.Can he profit on Mat home after the fact?

    My ex and I separated while he was an undischarged bankrupt.
    Six months after split he becomes discharged and then claims the rise in the property value as 50% his.
    Is a person who has not claimed at the time of discharge ANY gains able to profit after the fact?
    His bankruptcy attorney allowed for me to put money into the home as long as I could prove on record that all repairs and restoration monies came solely from me and not from my ex as he was " not allowed to earn money" on the home while bankrupt and still undischarged.
    I kept a clear trail with money that went in as the costs were extensive and the home was unlivable due to damages not covered through insurance.
    There was no intention on my part split from him whatsoever, I always thought we would work through the tough times together.
    He intended to work through them with another woman...combined with a ruthless temper, I gave up.
    What does the law say about benefitting financially after spouse did not declare any gains at time of his release in the matrimonial home?
    Is there case law on this?
    There do not seem to be lawyers out there(Canadian Law)who have experience in bankruptcy and divorce combined.
    I have had several options to hire lawyers who after a 375$ initial consultation say they would be happy to dig their teeth into it(after specifically being asked through their firm only for a lawyer who has knowledge of both concepts).
    I can't afford to sit through another opinion that is a guess only after paying up front for " a experienced lawyer ".
    I think this is how some have given their profession a poor name....yet I am still trying to be hopeful. Honest, solid, advice would be great if I am right or wrong in my thinking-I would rather understand the law as it has been interpreted by others with knowledge.
    Thank you very much for having this Forum, it is appreciated
    Last edited by Second Step; 12-04-2013, 04:27 AM. Reason: Spelling error and forgot to say thanks

  • #2
    After the discharge the trustee is by no means off the file. Trustee has to send notices out to all those who were creditors in bankruptcy and they have 3 months to file an objection to the bankruptcy. Then the trustee has to do Statement of Disbursements and Costs and send to everyone including the Office of the Superintendent of Bankruptcy. That takes another 30 days or so. Only after these steps are taken is one truly ABSOLUTELY discharged from bankruptcy.

    This 6 month process may or may not provide you with some time to get some things done.

    I was fortunate to find a family lawyer who had business background and was reasonably well-read in bankruptcy law. However, bankruptcy is a world unto its own and the lawyers who specialize in this area are very, very expensive.

    I would recommend that you jump in and self-educate yourself on the Bankruptcy and Insolvency Act (BIA). Information required to do this readily available on the internet.

    In my opinion bankruptcy trustees are the scourge of the earth. They don't have a professional organization that acts as a watchdog like other professions do. Trustees are only accountable to the OSB and that accountability is, in my opinion, very lame indeed.

    Read, read and read. Remember, any money your ex makes over his monthly personal exemption, goes to the trustee as an overage payment which in turn is supposed to be held in trust to pay out creditors when the bankrupty is given an Absolute Discharge.


    • #3
      Thank you for sharing your experience. My ex is discharged I assume fully as it has been a year since his date of discharge.

      His trustee was very specific about the valuation of the home at time of filing and that any changes that improved the home had to be attributable to me only. This gave me too much confidence in doing what appeared to be the right thing for our family at the time and I gave it my all, literally and figuratively.

      My ex was caught not being forthcoming about a settlement he was receiving on a monthly basis which they called him on and they claimed. I do not know if this helps them have a better scope on the credibility combined with what has occurred with me or not. It does not sound like what their opinion of him matters now though. I do not imagine it was high though.

      He was attempting to preserve payments and assets to realize on after he was discharged and waited till that occurred in my case. Not unusual I imagine. It's a rough go bankruptcy. As a spouse with assets prior to marriage that were not co-mingled and selling them off to fix the place for an us that did not actually exist I am hammering myself a little on all the things I did not see before, but knew better by instinct which I ignored.

      He also is claiming half interest in my home prior to marriage which was my only income throughout our decade of marriage. He declared that the house was non-matrimonial and that he held no interest in it, therefore the trustee waived pursuing it, which was lawful and accurate. Again, the ex is seeking to realize there as well although he did not contribute to it himself. I sold after our separation and at that time I put more monies into the matrimonial home hoping my stepchildren would be allowed to return if it was environmentally safe for them to do so.

      He stopped allowing me spend time with the three great children I had shared access with since they were toddlers about three months after his release date... As a matter of would have been dead on. He did not show up for Thanksgiving while I was waiting for the to arrive at a Restaurant I called and he said they would not be bothering to come to see me any longer and hung up, told me to "get over it" and said "what do you expect? You left me and thee are consequences".

      I think I have the missing link for his timing now. I do not like it but at least it shows me how calculating he really was. I am not bitter just feel foolish as I never saw it coming. I tried to be compassionate and I will not regret that but I wish I had also been wise.

      Thank you for the insight and also opportunity for hindsight which now makes sense. I think there are more revelations to come and hopefully some will be more favorable and make me feel less silly than I do right now.
      Wishing you All the Best.


      • #4
        Please check and verify about your ex's bankruptcy status. Find out if he was given a "conditional" discharge or an "absolute" discharge. There is a big difference. You can find information by calling the Office of the Superintendent of Bankruptcy. Find out if the full discharge process actually happened. Ask if the trustee has completed Form 16 (statement of receipts and distributions). If OSB does not have that then your ex has not been released. It is not uncommon for some to remain, in perpetuity, an undischarged bankrupt, particularly when the bankrupt violated bankruptcy rules (which you indicated your ex clearly did).

        When one's spouse goes bankrupt, and you are the last to know, it hits you like a hammer. There is no literature that I am aware of out there that provides a sensible guide to surviving this. No one can really be prepared for this. Trustees and their advertisements are quite cavalier about the effects of bankruptcy on spouses.

        One good thing to know is that now that he has supposedly discharged all of his debts, the courts will recognize that his is now in a good position to pay SS (if you are pursuing that).

        Read the bankruptcy act over and over. Find out the accurate status of his bankruptcy. Read through the steps of bankruptcy from the BIA act, not from short blurbs on bankruptcy trustee website (as the advertisement information is incomplete and quite misleading).
        Last edited by arabian; 12-04-2013, 10:59 AM.


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