Finding out that your spouse is filing for bankruptcy protection during a separation or divorce can be shocking and scary, especially if you come to realize that your spouse has been spending marital property unwisely.
Maybe your spouse took out a mortgage on a second home that you didn’t know about; maybe your spouse made bad investments behind your back; or maybe your spouse kept you in the dark about your family finances until it was too late.
Unfortunately, this is a reality that many Wisconsin residents find themselves in when ending their marriage through divorce or separation. And sadly, the non-filing spouse can suffer many negative consequences during his or her spouse’s bankruptcy proceeding.
During the Chapter 7 bankruptcy process, the court gathers as much property as possible (with many exceptions) that can be sold to pay off debts. During this step, the court appoints a trustee to oversee the gathering of property and assets held by the couple.
The bankruptcy trustee might come after assets in the non-filing spouse’s possession in order to satisfy the requirements of the bankruptcy case. The trustee might tell the non-filing spouse that he or she has rights, but the process can be confusing and devastating.
The good news is that our firm has years of experience helping Southeastern Wisconsin residents who are in this very situation. We stand up for the rights of non-filing spouses in bankruptcy proceedings and help them determine the right course of action to take.
Additionally, we provide independent, trustworthy and confidential counsel to spouses who aren’t sure whether they, too, should file for bankruptcy. Even though this is an understandably difficult thing to go through on top of a divorce or separation, you do not need to handle it alone.
For more information on how our firm assists non-filing spouses in bankruptcy cases, please visit our Milwaukee Bankruptcy for the Non-Filing Spouse page.
