Frequently Asked Bankruptcy Questions

My ex-spouse filed bankruptcy. What do I do?

Consult an attorney. In most cases your spouse must continue to make alimony, maintenance and child support payments. If your spouse agreed to pay certain joint obligations, pay the mortgage on your home, or transfer assets to you, you may be able to obtain a bankruptcy court order excepting those obligations from the bankruptcy discharge. The relevant statute is 11 U.S.C. sec. 523(a)(15). Finally, if your spouse discharges a joint debt, that fact may appear on your credit report.

My employer filed bankruptcy. How do I get paid?

If you are a union employee, contact your union. Often unions will represent the employees in the bankruptcy proceeding. If not, file a proof of claim for any unpaid wages, vacation benefits, etc. owed from before the date of filing. You can obtain a proof of claim form from the local bankruptcy court.

Follow the instructions on the proof of claim. Up to $4,000 (this amount will increase periodically - make sure you check a current version of the bankruptcy code) of the amount owed to you for services performed within 90 days of the date of the bankruptcy, or the date your employer closed its doors, whichever occurred first, is a "priority claim" under 11 U.S.C. sec. 507(a)(3,4). The rest of the amount owed you is a general, unsecured claim. Priority claims will get paid before general unsecured claims.

File the proof of claim with the bankruptcy court. Make sure you send them a copy and ask to have it returned to you with a date stamp. Call the bankruptcy court and obtain the name and address of the debtor's attorney or the attorney for the trustee if a trustee has been appointed. Send them copies of the proof of claim.

Are there bankruptcy crimes?

Yes. Criminal statutes related to bankruptcy can be found at 18 U.S.C. sections 151 to 157. Examples of bankruptcy crimes are knowingly and fraudulently concealing assets, lying under oath or on bankruptcy schedules, or knowingly and fraudulently filing a false proof of claim. Bankruptcy fraud can also be used to support a RICO claim.

How do I report a bankruptcy crime?

If you are aware of a bankruptcy crime, you should report the crime to the trustee assigned to oversee the case. If no trustee is appointed, contact the U.S. Trustee's Office. The trustee will, if he or she has reasonable grounds for believing that a crime was committed, report the facts to the United States Attorney for investigation.

How can I learn more about bankruptcy?

The Internet is a useful resource for learning about bankruptcy. The Bankruptcy LawTrove includes links to a number of on-line bankruptcy law guides, including one at Cornell School of Law. In addition, most law libraries will have copies of "Norton Bankruptcy Law and Practice, 2d," a comprehensive treatise on bankruptcy law (Mr. Agin is a contributing editor) and "Chapter 13 Bankruptcy" by Keith M. Lundin.

What if my question isn't answered here?

If you are in Massachusetts, or have a question about bankruptcy proceedings in Massachusetts, send your question to Warren E. Agin of Swiggart & Agin, LLC using the Feedback page and we will try to help you. Make sure you state where you live. Please keep in mind that we can not provide legal advice over the Internet or answer questions about state law (other than in Massachusetts).

You may want to contact an attorney. Most bankruptcy attorneys do provide free initial consultations and can provide you with the guidance you need to decide whether to file a bankruptcy petition.