Canadian Husband and Wife are in the middle of a divorce, their second from each other.
Couple’s assets are appraised.
A division of assets is determined.
To equalize the property division, Husband must pay Wife about $41,000.
Husband files for bankruptcy.
And as part of Husband’s bankruptcy case, Husband lists and ultimately discharges through the bankruptcy the $41,000 debt Husband owes to creditor-Wife.
There is something of an outcry in Canada over Husband’s ability to avoid his marital divorce obligations thanks to Canada’s bankruptcy laws.
Canadian Supreme Court highlights the problem as requiring legislation to “close the loophole”.
US bankruptcy laws differ from Canada’s laws.