Ex-spouse Challenges Debtor in Bankruptcy Court
Chapter 13 cases with ex-spouses as creditors are some of the most challenging cases to file. Not only do they deplete the financial resources of the debtor, but they also consume extensive emotional energy for all parties involved. One of these recent cases went before a judge with the following claims being made the debtor's ex-wife:
The debtor was the real owner of a business in another person's name;
He was not claiming his true income on tax forms and financial affidavits;
He was behind on Domestic Support Obligations;
His income fluctuations were preventing him from being able to confirm a plan; and
He had undisclosed gambling losses.
While the court did not address the gambling losses, they did hold an evidentiary hearing with exhibits and testimony presented. After weighing the evidence, including the debtor's testimony and demeanor, the Court ruled that he had filed his petition in good faith. Considerations for the Domestic Support Obligations (DSOs) was turned over to the state court.
In short, the Court denied the debtor’s ex-spouse’s motion to dismiss, and denied confirmation of the Plan, but granted the debtor the opportunity to file an Amended Plan, in order to more accurately address priority debt.
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Case referenced: In re David Gravlin, Jr., (Bankr. D. Mass. 3/6/20) | Judge Christopher Panos
