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Litigation
Chapter 7 Bankruptcy Petition
Where one spouse fails to show cause why a Chapter 7 bankruptcy petition by the other spouse should be dismissed, the motion must be denied. In re Georges, No. 05-2252, United States Court of Appeals for the Third Circuit, Nov. 16, 2005.
The parties were married in 1988 and separated in 1996. In 1998, the wife filed a Chapter 7 bankruptcy petition. The husband moved to dismiss the petition, claiming that the wife committed fraud by failing to list all of her assets and income on the petition. The bankruptcy court denied the husband's motion. The husband then filed a second motion to dismiss the wife's bankruptcy petition. He argued that any discharge in bankruptcy received by the wife would interfere with his own bankruptcy case and that the wife was merely seeking to take property belonging to him. The husband's second motion was denied, and the husband appealed to the Third Circuit. It held that a Chapter 7 bankruptcy petition may only be dismissed for cause. Since the husband was unable to establish cause, his motion must be denied.
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