QUESTION
Can a bankruptcy trustee override a marital settlement agreement?
Asked on Oct 03rd, 2012 on Bankruptcy - Florida
More details to this question:
My ex-husband filed for bankruptcy Chapter 7 while our house was being sold. Now the bankruptcy trustee said she is undoing the 75/25 split, 75% to me of the proceeds of the house which was stated in the marital settlement agreement. I was to receive 75% of the proceeds of the sale of the home because I was waiving maintenance.
6 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on May 21st, 2013 at 3:22 AM
This does not sound right. I recommend that you contact a bankruptcy attorney to sit down with him (and the Judgment of Divorce and Marital Settlement agreement). You may need to file an adversarial proceeding to protect yourself.
Answered on Oct 07th, 2012 at 11:53 AM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Yes, but not if the settlement agreement is in the nature of an order for support.
Answered on Oct 07th, 2012 at 11:52 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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In NJ, I do think that she is able to. She may be able to void or interfere with the sale, but I do not believe she can undo a marital separation agreement issued by another (state) court.
Answered on Oct 07th, 2012 at 11:13 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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The trustee can try. Unfortunately, a case was decided September 28, 2012 in the 6th Circuit (which Michigan is in) by the Bankruptcy Appellate Panel (In Re Neal) that seems to indicate that the trustee can pursue transfers where a reasonably equivalent value was not received pursuant to a Separation Agreement. Contact an attorney to discuss your situation more thoroughly.
Answered on Oct 07th, 2012 at 11:08 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The trustee is probably open to negotiation and may indeed settle on something like $1000. The settlement agreement should be viewed in full. You waived alimony in return for a larger portion of the home. Have your divorce attorney contact the trustee to negotiate.
Answered on Oct 07th, 2012 at 10:45 AM