A Chapter 7 bankruptcy trustee is filing an action to recover funds from the wife of a debtor….

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A Chapter 7 bankruptcy trustee is filing an action to recover funds from the wife of a debtor. The wife signed a debtor’s instrument in which her husband borrowed funds to construct utility barns and fencing necessary for his horse-raising business. The debtor and his wife used the property on which the horse-raising facilities were built as their residence. The purchase of the materials to construct the barns and fence was not made with any intention of increasing the value of their residential property. What additional information would you need to determine whether the wife was an accommodation party for purposes of determining liability regarding the debt instrument that she signed?

 

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