What is the name of your state? Delaware question: Chapter 7 ##horror story## (Warning longish story and then questions)
Background: My XH retained a bk attorney in early February 2002. He told me he was going to file business and personal bk in mid-November 2001. He told both of our lawers that he was going to file bk in late June 2002 indeed he told me at our 4-way settlement (his lawyer and my lawyer) that he had already filed for bk in mid-June. As of result of his refusal to divide the marital debt, which included close to $20,000 on my credit card (that I didn't know I even had and am pursuing by validation letters - thanks to this board I know how to do this now) to purchase inventory for his business, I have to file bk too because I am on a fixed disability income. He has not to date filed. I keep getting calls from his personal and business creditors - that's okay, I know how to deal with them (I just give them his "new" contact info). From the nature of the calls I've been getting for him the last several weeks, I think several of his business creditors are getting ready to "take action" against him.
In mid April he transferred the "business collateral" back to the original owner of the assets, citing inability to pay he balance of the original promissory note that we both had signed. He also cited the "aging of merchandise". The business was considered the only marital asset of potentially substantial value (our home has very litttle equity). But he had to produce his business records for the settlement and did so very reluctantly after my lawyer filed a "motion to compel". It turns out that not only was the business recovering (it is a sort of travel related industry) from the "events" of 9/11 (that his lawyer cited as the reason it "failed", but was actually thriving. Between 12/5/01 when XH reported he saw his bk attorney and 4/16/02 when I heard that the doors had been closed and operations ceased, he purchased well over $55K in new inventory! Hardly typical behavior for someone whose claim is the business is failing. It gets better...
The former owner being in failing health (in fact he just died) must have some sort of "auction" because XH's new wife is now the proud owner of at least $150K in inventory and other assets for just $45K. XH and NW wife made sure that she was the high bidder. That's the only way I think the former owner would be able to do it without someone calling it outright fraud. Some folks told me that the money came from her 401K but I had no right to demand she substantiate this.
In our property settlement/alimony paperwork there is a phrase about both parties declaring their intent to file bk followed by "it is so ordered" and signed by the Judge. I am filing later this month. XH is not working - my first two alimony checks came from NW's account. The court did not give a date by which the bk's would have to be filed unfortunately.
Now for my question: I (and my bk lawyer who was also my divorce lawyer) feel there's the potential for fraud going on here. But unless some of his creditor's file lawsuits to put additional pressure on him to file bk what can I do to present my "evidence"? Can he just wait for a full year after the transfer of the business? Can they possibly get away scot free? Is there anyway I can legally notify his business creditors that this massive buying spree occurred?
Cyana
