“Bruce Weiner Debt Case Studies” is a recurring feature on this blog that summarizes some of the facts in a client’s bankruptcy case. The goal is to share the kinds of real world circumstances that lead people to bankruptcy, and to demonstrate how the bankruptcy process and a good bankruptcy lawyer can help.
Case Study: “Other People’s Debts”
The Client: A housewife with $7-$8 million in debt.
How the debt was incurred: The husband’s business invested in a number of real estate deals. The wife signed a lot of the papers making her liable, though she was never involved in the deals. The real estate market crashed leaving all of the investments worthless. The couple subsequently divorced.
The Problem: The wife was out of the marriage but still had joint liability for the debts because she had signed her name on many of the deals. She had no credit card or other significant debts. But in order to be free and clear of the investment debts going forward, she needed help from the bankruptcy process to get a clean slate and move forward with her financial life.
The Result: We helped the wife file for Chapter 7 bankruptcy, independent of the husband (who had not sought bankruptcy protection as of that time). After that she had her fresh start.
The Key: Preparation! It was crucial to review all of the documents, agreements, finances, relationships, etc. to sort everything out and make sure there were no loose ends. Once we got our heads and hands around a very complicated situation, we were able to submit a bankruptcy filing that was accurate and well thought-out. All the hard work was done pre-filing. Once we filed it was smooth sailing for our client.
If you’re thinking about filing for bankruptcy in New York and are seeking an experienced New York bankruptcy attorney to help you navigate the process, please feel free to contact me for a free initial consultation.
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