Living Large In Bankruptcy

[keepinitreal]

http://blogs.wsj.com/wealth/2010/07/19/living-large-in-bankruptcy/?mod=rss_WSJBlog&mod=wealthbeat

[andy158]

Yes. The more wealth you have the more loopholes your top attorneys can find. These are the kind of people that wreck our economy. Extreme wealth breeds corruption and they constantly are walking the legal fence to support their lifestyle. They pay no taxes and live the life of luxury all in the name of being "wealthy exempt". They hide their assets like common criminals (which they are) and constantly look over their shoulders for the man. At least I can sleep at night knowing my bills are paid and I filed a tax return last year.

My question is how in the world did this guy qualify for a chapter 7? Sounds fishy to me. ^^^

[wonderingrov]

I would love to see the means test on this case - how in the world someone like this files a Chapter 7 with a straight face is beyond me.

Maybe I should have hired his lawyer for my case......

[rebuilt]

Probably non-consumer, then no means test, right?

[BCA2009]

Probably non-consumer, then no means test, right?

I don't see how it could be anything besides non-consumer. Could you imagine $500 million on credit card and best buy accounts?

[banca rotta]

There's no mention of what state he lives in. Not sure where Medina is. If it's in Seattle whats their homestead exemption since he managed to keep a 15 million dollar home in a chapter 7.

Even though he's supposedly being supported by friends and his wife this should still count as income and he will be pushed into a chapter 11 since he wouldn't qualify for a chapter 13.

Personally the story sounds too far fetched. Does anyone alive think they can pull this off unless they are either in congress or the CEO of the banks they are trying to stiff?

You have to think that they would tone down their expensive lifestyle until after discharge.

As for the question of the rich hiding assets I'm sure more of the rich do then the poor. While they are on top during the good times they can keep some assets off shore just in case, ten years or so before filing and if they need to file like this character did no one will ever find the assets unless an ex spouse reports it.

Most poor people don't have the money to plan that far in advance.

[HHM]

The article mentions Seattle, so I am assuming he lives in Washington. Washington is a community property state. Hence, the ability to keep truly separate spousal assets as separate. (the rings). Also, clearly, this is a non-consumer chapter 7. Hence, why the ability to maintain a lifestyle.

This is NOT a case of the rich's ability to find loopholes, this is fairly standard fair for the way the BK code is written. It is just that the rich are in a better position to take financial risks and end up in a position where certain exceptions to the BK code would apply (i.e. the non consumer BK).