A federal appeals court ruled that even though a divorce was pending and the wife was awarded substantial property of the marriage (although in her husband’s name,) the bankruptcy court had the right to seize the property for distribution to creditors. The husband had put the family home and other assets in his name only, and Vladimir said that Tanya “would not receive a single kopeck when the dust from the divorce settled”. His wife succeeded in an award of 100% of the assets to her in the divorce. She had thwarted her husband. But his creditors then forced him into involuntary bankruptcy. The Court found that since a judgment had not been technically entered, the bankruptcy court had priority. Musso v. Ostashko. Moral? Act to protect one’s interests, and act promptly.
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