[eddykeller]

My wife is listed as a creditor in her ex-husband's bankruptcy (chapter 7) so we got a copy of the document to verify her interests. In going through the document there appears to be quite a few things that were not declared or misrepresented - however it is beyond our ability to prove it. Is it appropriate to bring these suspicions to the attention of the prosecution or better to say nothing as we cannot prove the suspicions?

[XTC832]

When you say, 'In going through the document there appears to be quite a few things that were not declared or misrepresented - however it is beyond our ability to prove it.' I just need to ask, to what things are you referring? Are these "things" relevant to your wife's position in the case or are they misrepresentations pertaining to other creditors? Also, can you tell me, what is the status of this Chapter 7 case? Has it been filed? Closed? Discharged? Dismissed?

[eddykeller]

My wife knows of several items of reasonably large cost (rolex watch, gun collection, antique furniture) that were purchased when they were married that were not declared as assets in his filing. While it is possible that he did get rid of these items it rather unlikely given our assessment of the man's character. These things are not pertinent to my wife's involvement in the proceedings. She was only informed of the filing because he pays child support (which he pays reluctantly and usually misses 2 or 3 of the months in a year) and due to that she is listed as a creditor. The first reaction is to say nothing about the suspicions but based on what he has done in the past there is a precedent. He hid a lot of items (cars, jewelry,etc.) including cash, when they got divorced - he and his lawyer denied their existence. Oddly many which have miraculously appeared in later years. (as a sidebar - yes he has been taken back to court on the missing child support and items but it always ends up costing more than what is won).
The likelihood of him being less than forthcoming in this action are high - yet we have no tangible proof that he is hiding assets just a suspicion based on previous behavior. I acknowledge we are also less than impartial in our dealings and opinions so even if he is completely above board in this his reputation as we know it precedes him. At this point the case has been filed and the first meeting with the creditors is early next month.

I welcome any insight, criticisms and comments.

[XTC832]

Chapter 7 (Sec 523) will not discharge the child support payments. He will have to continue that even if he receives a discharge with other creditors. If, after receiving a discharge, he defaults on the child support as he has in the past, then you have a legal precedent in that respect. Your wife may raise questions about her interests at the creditor meeting on the child support issue.

As to the assets you mentioned, Chapter 7 does provide personal property exemptions. The exemption amounts vary from state to state, unless Federal exemptions are being applied. Even if he lists them, it is at the Trustee's discretion to determine fair market value and whether they should be liquidated. It may or may not have a bearing on the ultimate final decision. The Bankruptcy Code requires full disclosure of ALL assets, but many filers "get around" that point simply by stating they no longer have the assets. Until the system can fill that crack, there's not a whole lot that can be done. As you say, he may be hiding assets or funneling money through other channels, but in order to object, there has to be a basis. Past suspicions and shady behavior really don't provide an objectionable basis. When the trustee reviews the case, he/she goes by the financial facts and may or may not go in depth with the questioning.

In cases of bankruptcy, when an objection is raised by a creditor, it starts what is called an "adversary proceeding." The burden of proof is on the creditor filing the objection. Since you say that you don't have conclusive proof, it really isn't to your advantage. I'm not telling you what you should or should not do. Just take this as friendly advice from someone who's been around the bankruptcy world many, many, many years. If he's the kind of man you say he is, then ultimately, he's going to hang himself somewhere, maybe on a tax return or some other financial dealing. Take care!

[Fr_Chuck]

She should appear at the first appearance of creditors to notify the court that this debt is child support.


As for as anything else, there is not a prosecutor since this is not a trial, merely hearings.

Any "proof" has to be real proof something you can show documents, or something acceptable in court, not opinions

[twinkiedooter]

He sounds like he'll get away with whatever assets he is trying to hide. It will just be a matter of time until he makes the wrong person unhappy with the way he is lying.

Right now, just concentrate on the child support issue. It is tempting to tell all, but since there is no physical proof that he still has these assets or just where they are, he's going to skate on down the road. Unless you can give precise details as to their whereabouts and paperwork showing his ownership of these items - you will just be spinning your wheels trying to trap him. I'm sure if he's this "clever" he's obviously muddied the trail to his ownership of these items a long time ago.