Bankruptcy Laws in Regards to Frivilous Expenditures

[AnotherMoron]

What is the name of your state (only U.S. law)? GA

My idiot sister's husband left her and took their 3 kids. Good for him, trust me, they don't need to be around her and they're doing great not being around her. She's not a fit parent.

He has to file bankruptcy because she apparently ran up quite a bit of debt behind his back and much of it in his name. Ever since he left she has had a field day spending and shopping on credit cards in her name that she got because she still claimed her husband's income (which is considerable) as her household income although she's living in an apartment and not with him. She is also not working, won't get a job, he's supporting her. I don't know why.

When he files bk she fully expects that all her debts are going to be filed right along with his since they're still married. Is this true?

All of the purchases made on all of the credit cards were frivolous. A new trail bike (she's never ridden one before) and all the accessories that go along with it, a 42" plasma tv, brand new furniture to furnish her apartment, clothes, trips, kick boxing and fighting lessons, knitting classes, the list goes on and on, but none of it was necessity.

How are bk's generally handled in cases like this when the bills are out of control because of someone's unwillingness to live within their means? Are bk's handled differently due to someone falling on hard times and being forced to charge groceries or utilities?

This is more for my edification than my sister's as she and I are no longer speaking due to the treatment she visited upon my nephews when they were in her care and her current, irresponsible behavior.

Thanks in advance.What is the name of your state (only U.S. law)?

[HomeGuru]

Originally Posted by AnotherMoron

What is the name of your state (only U.S. law)? GA

My idiot sister's husband left her and took their 3 kids. Good for him, trust me, they don't need to be around her and they're doing great not being around her. She's not a fit parent.

He has to file bankruptcy because she apparently ran up quite a bit of debt behind his back and much of it in his name. Ever since he left she has had a field day spending and shopping on credit cards in her name that she got because she still claimed her husband's income (which is considerable) as her household income although she's living in an apartment and not with him. She is also not working, won't get a job, he's supporting her. I don't know why.

When he files bk she fully expects that all her debts are going to be filed right along with his since they're still married. Is this true?

All of the purchases made on all of the credit cards were frivolous. A new trail bike (she's never ridden one before) and all the accessories that go along with it, a 42" plasma tv, brand new furniture to furnish her apartment, clothes, trips, kick boxing and fighting lessons, knitting classes, the list goes on and on, but none of it was necessity.

How are bk's generally handled in cases like this when the bills are out of control because of someone's unwillingness to live within their means? Are bk's handled differently due to someone falling on hard times and being forced to charge groceries or utilities?

This is more for my edification than my sister's as she and I are no longer speaking due to the treatment she visited upon my nephews when they were in her care and her current, irresponsible behavior.

Thanks in advance.What is the name of your state (only U.S. law)?

**A: in such a case one option could be that the BK Trustee dismisses the BK petition whereby there is no BK protection from creditors. Another option would be the forced Chapter 13 change from a 7.

[bigun]

Your post is a bit confusing but, I gather she isn't filing. If so, any debts solely in her name will be her responsibility. Only joint debts that the husband files on will be included in the bk {along with his personal debts}.
Hopefully, his lawyer has counseled him about any timing issues that might apply where luxury purchases are involved.

[Ladynred]

When he files bk she fully expects that all her debts are going to be filed right along with his since they're still married. Is this true?

No, it's not. GA is NOT a community property state, and, as Bigun stated, accounts in her name only are solely HER responsibility. If her (ex)husband files for bankruptcy, she's going to be left - and chased - for the WHOLE LOAD. If she filed, and it's determined that she made these charges with no intention - and obviously no income - to pay, then she could find some debts as non-dischargeable.