Expert: Terry Leeders - 1/1/2008

Question
Question: my husband and I are separated and getting a divorce. I noticed that he has been using his credit cards to purchase everything. He said that he is going to file bankruptcy as soon as the divorce is final. How can he legally get away with running up $1000++ on multiple credit cards and then get to file for bankruptcy. And he said that he will just sell his antique cars to his father for $1 so they cannot take those. Is all this legal? Cause it definitely doesn't sound fair!! We are in TN if that makes a difference.

Answer
Bankruptcy can eliminate consumer debt.  If you have joint accounts, your divorce lawyer needs to allocate the debt thru the divorce decree.  Transfers and sales of assets need to be disclosed in the bankruptcy, and the trustee can cancel/reverse fraudulent and preference transfers, so he won't get away with it.