NEED ATTORNEY IN FLINT FOR BANKRUPTCY? CALL BANKRUPTCY LAWYER TERRY BANKERT 810- 235-1970
DID YOU KNOW-When a bankruptcy case is filed by or against a spouse while a divorce is pending, exclusive jurisdiction over the property of the debtor spouse (the bankruptcy estate) is automatically transferred to the bankruptcy court. See In re White, 851 F2d 170, 173 (6th Cir 1988).
The bankruptcy estate is created when the bankruptcy case is filed (whether filed voluntarily by the debtor or filed involuntarily against the debtor by creditors meeting the requirements of 11 USC 303). The bankruptcy estate consists of all property of the debtor. 11 USC 541 defines property of the estate very broadly; generally, it includes all property of the debtor “wherever located and by whomever held.” See 11 USC 541 discussed in §§17.5–17.6.
When a bankruptcy is filed by (or against) a spouse while a divorce case is pending in state court, the state court’s ability to take action against property of the debtor’s estate is automatically stayed or limited by 11 USC 362.
There are some exceptions to the automatic stay pertaining to family law matters, which are found in 11 USC 362(b)(2). Counsel for both the debtor and nondebtor should immediately take appropriate actions as discussed in §17.11. The nondebtor spouse may need to file a claim as discussed in §17.29.
Other sections of special note include §17.16 (domestic support obligations (DSOs)), §17.17 (non–DSO obligations), §17.20 (preferential transfers), §17.21 (fraudulent transfers), §17.26 (power to intervene), §17.27 (pursue preferential transfers), §17.28 (sham divorces), §17.29 (proof of claim), and §17.30 (drafting divorce judgments).
For help-Flint Genesee MI Attorney / Lawyer practicing in Family Law, Divorce, Bankruptcy. 810-235-1970
http://attorneybankert.com
Michigan Family Law ch 17 (Hon. Marilyn J. Kelly et al eds, ICLE 7th ed 2011), at http://www.icle.org/modules/books/chapter.aspx/?lib=family&book=2011553510&chapter=17 (last updated 09/30/2011
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