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Tag: Family Law

Family Law – The Competing Issues of Bankruptcy and Family Law

Family law property disputes or spousal support proceedings can be more complicated if one partner fails or proposes bankruptcy. In these cases, a direct dispute occurs between a trustee ‘s conflicting bankruptcy interests and the separate non-bankrupt spouse in deciding how property will be divided among the parties.Do you want to learn more? try this web-siteĀ  Currently, disputes between bankrupt estate trustees and the divorced spouse can be resolved by the Family Court, which is empowered to make property transfer decisions even though the property is in the hands of the trustee in bankruptcy. Where family law proceedings have begun, a bankruptcy trustee may usually seek to enter the proceedings as a party if the Family Court is convinced that any property decisions that may be rendered that impact the interest of creditors. When deciding how property matters will be resolved in the sense of bankruptcy, the Court must observe the ordinary rules governing the sharing of property between partners, and also consider the implications of a possible judgment on the creditor’s ability to recover his debt from the bankrupt partner. The effects of an order on creditors are given particular attention when determining whether adjustments should be made inContinue readingFamily Law – The Competing Issues of Bankruptcy and Family Law