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San Jose Bankruptcy Attorney comments on the ongoing Denny Hecker divorce and bankruptcy saga.

San Jose Bankruptcy Attorney  comments on the ongoing Denny Hecker divorce and bankruptcy saga.

As Denny Hecker’s empire continues to crumble around him, his attempts to avoid paying spousal support to his wife Tamitha were rebuffed by a Minnesota divorce court judge.  Hecker was ordered to pay $7,500 per month to Mrs. Hecker in alimony and child support.

Hecker, who filed for Chapter 7 bankruptcy protection in June as his auto dealership empire collapsed, said he was unable to afford the support payments for Mrs. Hecker.  But the judge, after examining Mr. Hecker’s financial records, discovered that he had given his live-in girlfriend more than $72,000 and spent $27,000 on vacations since his June bankruptcy filing. That discovery led the judge to order the $7,500 per month in spousal support, since Mr. Hecker was spending nearly $30,000 per month on his girlfriend.  The judge also ordered Mr. Hecker to pay for his children’s health insurance.

Mr. Hecker’s spending habits since he filed for Chapter 7 bankruptcy have come under great scrutiny.  Mr. Hecker is due in court in December to explain where the more than $125,000 he withdrew from a 401k plan is, and why he withdrew the money without the court’s permission.  The bankruptcy judge is considering holding Mr. Hecker in contempt of court for liquidating the couple’s retirement assets.

Mr. Hecker’s divorce has been contentious, given his level of spending on his girlfriend while asking the court to order his wife to sell her furs and jewelry to fund the lifestyle to which she had become accustomed.  The judge refused to order that since Mr. Hecker is spending $24,000 per month on his lifestyle while contesting the $7,500 per month that the mother of his children is requesting to maintain their lifestyle.

The Hecker saga is far from over.  Mr. Hecker has already been held in contempt by the bankruptcy court judge for improperly disclosing his assets and spending, and the divorce court judge may follow suit.

Hecker must pay estranged wife $7,500 per month: judge, Minneapolis/St. Paul Business Journal, November 25, 2009
At issue: Two women, money and Hecker, Minneapolis Star Tribune, November 25, 2009
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