Chapter 7 bankruptcy, client happens to be an attorney and happens to be in the middle of his second divorce. $70,000 in credit card debt. Second wife’s name was on some of the credit cards.(they are now separated) $130,000 in debt from attorney fees that he was using to divorce first wife but debt incurred during second marriage. Husband gives me a list of all of his expenses, debts, and his income. All of a sudden, he tells me that the bankruptcy is not just for him but for his second wife that he is currently divorcing, since her name is on the credit cards as well. I spoke to the second wife today. She owns an unfinished home in New Mexico that is currently worth about $50,000-$60,000 but no one is living in it. She had it before they were married. She doesn’t want to loose the home in the bk. I have a few concerns. First of all, there seems to be a conflict of interest in doing this bankruptcy for both parties as there is a lot of hostility between husband and wife and husband has threatened her that she will loose this home in the bk. If its in both of their interests to file Chapter 7, after they consult with their respective divorce attorneys, and their respective divorce attorneys discuss it with you and recommend it, you may be able to represent them both. Then, the divorce can go to permanent orders after the marital debt has been discharged.
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