Legal Question in Bankruptcy in Virginia

If may wife and I are in process of divorce and we are co owners of property, can they take our property if I bankrupt on my personal credit card debts?

Asked on 9/18/10, 7:35 am

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

If there is equity in the property, it can be taken by a bankruptcy trustee unless it is exempt. As Virginia only has a nominal exemption available for real estate, the only real exemption is if you own it as tenants by the entireties. If so, and there is no joint debt (other than debt secured by that property), it is exempt from your individual creditors in your bankruptcy. However, if you divorce within 6 months of the bankruptcy filing, the exemption is lost and the trustee can take it.

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Answered on 9/25/10, 5:45 am

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