Legal Question in Bankruptcy in New Jersey

Re: Ramifications of One Spouse Filing Bankruptcy

Generally speaking and without knowing the particulars of your financial situation and history, your assets should not be at risk if your spouse files an individual Chapter 7 petition to discharge various debt. In particular, your home (which you say is solely owned by you) should not be at risk unless your spouse was a joint owner with you and, to avoid creditors, transferred her interest to you without consideration. Note that a trustee can apply to the bankruptcy court to have the interest of a non-debtor in jointly owned property sold to liquidate the nonexempt equity of the debtor in that property. The court considers certain statutory factors in deciding upon such an application.