[CLBS] Divorce proceeding as a a stay violation

[rgreenwood at greenwoodlaw.com]

I would think a wise person would follow Laura's advice.  Especially 
since there is apt to be a mix of exempt and non-exempt property.  
Things may have changed, but years ago I recall a trustee taking a dim 
view of a divorce case that distributed all of the no-exempt property 
to the non-debtor spouse.  I think the two continued t co-habit 
after the divorce which also raised the trutee's suspicions.  But my 
memory might be faulty due to increasing age.  I also suspect the 
trustee will not be anxious to be in the middle of this if its all 
debt and no non-exempt property in sight. 
 

On Wed, 1 Mar 2017 18:18:07 +0000, Laura Burri  wrote:

       362(b)(2)(iv) says the stay does not apply to the commencement 
or continuation of a civil action for the dissolution of a marriage, 
except to the extent that such proceeding seeks to determine the 
division of property that is property of the estate. It would be better 
to get a stipulation for relief from stay to proceed subject to the 
rights of the estate. 

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Patrick J. Geile
Sent: Wednesday, March 01, 2017 10:59 AM
To: Bankruptcy list
Cc: Rachel Boyle
Subject: [CLBS] Divorce proceeding as a a stay violation

If a state court magistrate holds a trial on division of assets, but 
reserves the right for a final decree or makes a division between the 
parties subject to the rights of a the estate is a pending the Joint 
chapter 7 case, would that be a stay violation. 

Patrick J. Geile
Foley Freeman PLLC
953 S. Industry Way, Meridian, Idaho 83642 P.O. Box 10 Meridian, Idaho 
83642 Direct line: (208) 947-1563
Phone: (208) 888-9111
Fax: (208) 888-5130

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