Under federal law, 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." 11 U.S.C.A. § 541(a)(1). Thus, the New Jersey divorcing parties' equitable interest in the building in Romania was part of the bankruptcy estate. Wilson v. Wilson, New Jersey App. Div., October 20, 2012
The New Jersey divorce judge did not have jurisdiction to order distribution of funds from the father's 401K retirement account because of the automatic stay provisions of the Bankruptcy Code. Morales v. Morales, New Jersey App. Div., March 8, 2012
By denying ownership in the marital home in his bankruptcy case and taking the opposite position in his divorce action, the husband was attempting to manipulate the legal system to his advantage. Judicial estoppel was warranted. Romano, IV v. Romano, New Jersey App. Div., February 7, 2012
Even though the filling of a federal bankruptcy petition usually acts as an automatic stay of New Jersey state court proceedings, there are several exemptions. Accordingly, the New Jersey divorce judge's orders in this case fell within those exemptions and they are affirmed. E.C. v. P.C., New Jersey App. Div., December 14, 2011
The complexities of the intersection between New Jersey divorce law and the federal Bankruptcy Act are demonstrated in this case. In Re Kane, 3d Cir. Court of Appeals, on appeal from District of New Jersey, January 7, 2011
Under federal law [11 U.S.C.A. 523(a)], New Jersey orders and agreements for alimony and child support are not dischargeable in bankruptcy. Malandruccolo v. Malandruccolo, New Jersey App. Div., May 12, 2010
When a New Jersey wife and husband own their home as tenants by the entireties, each of them has an automatic right of survivorship. Here, the wife filed a bankruptcy petition and then died while it was pending. When the trustee in bankruptcy then claimed title to the property, the husband defeated this attempt and successfully established his sole ownership of the whole property. In Re Etoll, U.S. Bankruptcy Court, District of New Jersey, March 10, 2010
In their New Jersey divorce agreement, the parties agreed that he would pay her $36,500, which was characterized in the orders as "child support," but actually represented credit card balances. She had to pay these in full, after he filed a bankruptcy petition. The court rejects his contention that, because she was listed in his bankruptcy petition as a creditor, he should be relieved from any obligation to reimburse her. Molinari v. Molinari, New Jersey App. Div., April 10, 2008
The daughter admitted to misappropriating $400, 000 from her mother while managing her affairs. This was properly held to be a non-dischargeable debt of the mother's Estate, pursuant to Section 523(a)(4) of the Bankruptcy Code. There is no issue of material fact as to that section's requirement of defalcation while acting in a fiduciary capacity. Moreover, the daughter's prior statements in her answer to the adversary complaint – that she was her mother's fiduciary, and admitting to the defalcation – constitute a judicial admission and is binding on her throughout the litigation. Further, she failed to provide any support against the finding of defalcation. Finally, even if she had failed to admit she was her mother's fiduciary, or denied she committed the defalcation, the court would still have reached the same conclusions. In Re Wolke, Debtor; Buttimore, etc. v. Wolke, U.S. Bankruptcy Ct., February 22, 2008
