Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*
Welcome to JustAnswer,So sorry to hear of this dilemma. If my answer is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.
Did your wife received a discharge? Did she file a chapter 7 or chapter 13?
no discharge, yet. she filed chapter 7
did you understand my question/problem?
It is not typical that a 2004 occur. A 2004 is the equivalent of the deposition in state court. Typically a trustee would only schedule a 2004 if he believed that they were assets that were not disclosed on the petition or some type of fraud has occurred. I suggest that you retain local competent bankruptcy counsel.
what are the possible outcomes out of a 204 exam?
are you still there?
I am still here.
The possible outcome is that your wife is denied to discharge or is required to turn over assets. I must stress that you need to retain local counsel for her
we have council, I just want to hear a second opinion on the various questions we have ...
glad to hear that
she had a huge amount of credit card debt on her business (sole proprietor) which has been lost in the stock market in 2008/2009. We have all records, but don't know if this kind of loss counts as business loss.
I understand. I wish you the best of luckBest wishes for a Happy and Healthy New Year!
do you need more or more specifc information?
I believe I have answered your question
you only gave me information that I found on the Internet. I have more specific question about the kind of discharge she requested and whether the trustee would allow it under law.
I will opt out without charge – perhaps another expert can give you more information
alright, I'll wait then.
You said, "she had a huge amount of credit card debt on her business (sole proprietor) which has been lost in the stock market in 2008/2009". What was lost in the stock market?
If money was lost on stocks, who owned the stocks - your wife or her business?
If the money that was used for the stocks came from you wife's business credit cards, would you characterize the money that was used to purchase stocks as a loan from your wife's business?
You had asked if the debt counted as a business loss (that is the only question I see):
If the money was a loan from the business, it would be a business loss, but then the Bankruptcy trustee could look to you to try to get back some of the money that was loaned to you.
If the money was used for your wife - personally - it would not be a business loss.
I think this is what you wanted to know. If not, please let me know.
I guess that the business loan option applies most in our case.
I got my bk discharge about a year prior to my wife's bk application filing. I had included the loss of the money I got from my wife and my bk went through without questions asked. Can they question my bk discharge, which is more than 1 1/2 years ago now, regarding the monies I received as a loan from my wife's business? What would be a reason for such a questioning?
If you included this loan as a debt in your Bankruptcy filing, your wife's Bankruptcy trustee cannot look to you to try to get back some of the money you owed.
It is too late to look at your Bankruptcy - which must be done within one year after the case is discharged or closed. Bankruptcy Stat. 727(e).
Was the money lent to your wife's business with the stipulation that the money would be used to purchase real estate?
I must have misunderstood you.
If there was no agreement with the lender(s) to use the money for real estate purchases, there was no misrepresentation.