Category: Bankruptcy

Support obligations are not subject to discharge in bankruptcy proceedings

When a debtor files a bankruptcy petition, an estate is created and the estate includes all legal or equitable interests of the debtor in property as of the commencement of the case

An individual retirement account (IRA) is not insulated from a family court’s reach when the account holder has failed to comply with an order to pay counsel fees incurred by an adversary in defending a support order

The Bankruptcy Code prohibits the discharge of a debtor’s alimony, maintenance or support obligations to his or her former spouse and children, while debts assumed as part of the equitable distribution scheme are dischargeable

By virtue of having initiated a divorce action in which a bankruptcy debtor was seeking equitable distribution, her claim qualified as a contingent, equitable interest in (marital) property that could not ripen into a vested property interest — i.e., a tangible asset — until entry of a judgment of divorce

The filing of a bankruptcy petition stays adjudication of equitable distribution in a divorce proceeding if the property to be distributed is the property of the bankruptcy estate

Alimony and support obligations may not be discharged in bankruptcy

New Jersey has not adopted a statute authorizing the forced sale of one co-owner’s interest in real estate to another — the statutory remedy for co-owners of real property is partition or sale in lieu of partition

Penalty for late payment of alimony may be dischargeable in bankruptcy

Counsel fees are viewed as support and not dischargeable in bankruptcy

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