Part
Seven
Unhitch
Under
the new Federal bankruptcy
law, even if only one
spouse files for bankruptcy,
the other's future
earnings might still
be at risk. For instance,
let’s say that one
spouse income from
a job supports the
family, while the other
spouse is running a
struggling business.
If the entrepreneur
goes bankrupt, some
of what the solvent
spouse has spent on
the family is imputed
as income to the bankrupt
one, which makes the
bankrupt spouse ineligible
for a Chapter 7 fresh
start, and it could
boost the amount he
must pay each month
for five years in Chapter
13. The cold-hearted
solution: Prior to
filing for bankruptcy,
you should file for
a divorce.
If
you would like more
information regarding
asset protection, trusts,
family limited partnerships
or the subject of this
article please call
or email our office.
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