QUESTION
Can a property settlement be taken from me if I file bankruptcy?
Asked on Aug 27th, 2013 on Bankruptcy - Missouri
More details to this question:
I was awarded a property settlement in my divorce. My ex pays me monthly. If I file bankruptcy, can the trustee take that money?
11 ANSWERS
This is a very fact-specific issue. If the property settlement is "in the nature of" alimony or child support it will be deemed exempt and beyond the Trustee's reach. If it is not, but is rather just a plain, old division of marital assets, the Trustee could administer it and it could be taken away from you. You should discuss this issue with competent local bankruptcy counsel.
Answered on Sep 05th, 2013 at 2:46 PM
Sanford M. Martin
Whatever property you own when you file,? you must include that property, including marital settlements, in your property. You didn't indicate whether you may file Chap 7 or 13 but in both, whatever property you have must be included.
Answered on Sep 05th, 2013 at 2:46 PM
William Rhymer
The correct answer is it depends. Sometimes the trustee can get it and sometimes not. It depends on the amount and the circumstances. This is a question that you need to sit down with a bankruptcy lawyer and discuss your facts in order to make the best decision.
Answered on Sep 05th, 2013 at 2:46 PM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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It is possible; you need to have someone review the agreement.
Answered on Sep 05th, 2013 at 2:46 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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Probably. I'd check with an experience bankruptcy attorney before giving up.
Answered on Sep 05th, 2013 at 2:46 PM
Yes, you must report your assets when you file for bankruptcy.
Answered on Sep 05th, 2013 at 2:46 PM
Deborah F. Bowinski
You really need to consult with an experienced bankruptcy attorney. The answer will depend upon where you live, what sort of property (real or personal) settlement you are asking about, and the dollars involved. Yours is not a simple situation and with what is at stake, the cost of an attorney's fee will be well worth it in order to best protect what you have.
Answered on Sep 05th, 2013 at 2:46 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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The impact of bankruptcy on prior divorce agreements can be complicated. If the substance of your ex's obligation is truly a payoff over time of a property settlement, then this is just an account receivable that the trustee can collect. Depending on how long the payment plan is for the agreement, you might try to just wait on the bankruptcy. If the monthly payments are really for support, then you can argue that the payments are alimony even though not called alimony. A careful analysis is necessary by an attorney.
Answered on Sep 05th, 2013 at 2:46 PM
The short answer is "yes." You really need to discuss this with your attorney before making a decision about how best to proceed.
Answered on Sep 05th, 2013 at 2:45 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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The trustee can take property unless you have a statutory exemption available to cover the asset.
Answered on Sep 05th, 2013 at 2:45 PM
Bankruptcy Chapter 7 Attorney serving Austin, TX
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The Law Offices of Sean T. Flynn, PLLC
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This will depend on the exemptions you are taking and the chapter you intend to file. When you file chapter 7 the Trustee is able to liquidate any non-exempt assets. Normally a property settlement is non-exempt under the Texas state exemptions. The settlement may be exempt if it for support payments. The property could be exempt under the federal wildcard exemption however, this exemption has a limited amount and also depends on the amount of equity you would be exempting in your homestead.
Answered on Sep 05th, 2013 at 2:45 PM