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Filing bankruptcy during a family court case

My husband and I are separtated and there is an ongoing family court case in the courts, can he file for bankruptcy during this period?

Posted from: British Columbia

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One Response to “Filing bankruptcy during a family court case”

A licensed trustee said...

Yes, he can. If your matter has already started in Family Court then your lawyer may make an argument that the Family Court be given some priority in your ex’s bankruptcy, but it is in no way certain unless an actual Order has been issued.

If no action has commenced in Family Court and your ex files then any issues relating to asset equalization may be lost – your ex’s assets will vest with their trustee for the benefit of his unsecured creditors *(of which you may be one).

This is something you should discuss with your lawyer – it can certainly complicate things.