Legal Question in Bankruptcy in California

Re: Divorce & Bankruptcy

If he is holding property you jointly own, he has to list it. Also, if you have joint debts -- especially a mortgage, auto loan, or joint cards -- the creditors would probably look to you to satisfy those debts.

You didn't say how long you've been living apart. That would also come into play to determine if the debts incurred since that time should be considered community or separate debts. So, that should be a consideration.

Finally, if you have debts and qualify for and desire bankruptcy, you might consider joining his BK to save you time and money.

Re: Divorce & Bankruptcy

The answer is quite complex. If you are separated, then, your income will not be considered when your husband files bankruptcy. Legally, separated means that you believe in your mind that you are no longer involved in a marriage relationship and you have taken actions that show you believe you are separated (like cancelling your joint accounts). If your husband files a Chapter 13 bankruptcy, then you will not have to pay joint debts back. If, however, your husband files chapter 7, then any debts in your name will have to be paid back by you to the creditor.

However, in your divorce or separation decree, the discharged debts may be assigned directly back to your husband as debts assigned in a separation or divorce decree are not dischargeable in a chapter 7 bankruptcy. So, you may be able to collect the debt, you pay back, from your husband even though your husband has gotten a discharge.

In the alternative, because your husband no longer will have to pay the creditors, the court can assign a greater portion of the community property to you to offset an equal value of the debt owed. Then, after obtaining title to the property, you could file bankruptcy and might be able to discharge your obligations. However, there would be a strong likelihood that the bankrupty trustee would ask to see your divorce decree. Once he sees you received prooeperty for the purpose of paying off the debt, and then filed bankruptcy, the trustee might claim bad faith and seek to have your petition dismissed.