QUESTION
How are assets affected with a bankruptcy?
Asked on Apr 21st, 2011 on Bankruptcy - California
More details to this question:
I am exploring the option of filing bankruptcy due to a possible foreclosure, and to avoid a deficiency judgement, on our primary residence which I purchased before we were married. I also have 2 credit cards and another home, which is rented, in my name only. How will bankruptcy affect the assets that are just in my husband's name (ie: truck, boats and quads) which he owns free and clear?
6 ANSWERS
Before you file bankruptcy, you should carefully consider whether or not all of your assets and all of your husband's assets are exempt. If not, nonexempt assets could be sold for the benefit of creditors. My best advice: call me for a free consultation.
Answered on May 17th, 2011 at 9:28 AM
The assets that are held by a spouse may impact the bankruptcy depending on which state you live. In a community property state like California, assets purchased during the life of the marriage are considered community property and are presumed 50/50 ownership between spouses. If you want to keep your home and file a chapter 13 bankruptcy you must be able to pay off your arrears in addition to paying your current monthly payment on your home for the next 3 or 5 years. Your assets will determine your liquidation assessment and will be important to developing your payment plan.
Answered on Apr 26th, 2011 at 10:08 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Separate property assets of a non-filing spouse are not property of the bankruptcy estate.
Answered on Apr 25th, 2011 at 12:13 PM
If one spouse files bankruptcy, it does not implicate, in any way, the assets belonging wholly and individually to the non-filing spouse.
Answered on Apr 25th, 2011 at 12:13 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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As a California resident, assets of the spouses are community property unless they were owned prior to getting married and no post-petition earnings or other community property has been invested in such property or the property has been legally transmuted into separate property. As such, you need to apply the exemption laws to protect them. If you cannot exempt them fully, you may consider filing a Chapter 13 case instead of a Chapter 7 case. Please contact us for an free initial consultation with a lawyer to discuss this in more detail.
Answered on Apr 25th, 2011 at 11:34 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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The best thing for you is to write down your debts, payments, income and value of assets and go see a lawyer who will then ask you questions and of whom you can ask questions and get the information you need to make an intelligent decision.
Answered on Apr 25th, 2011 at 11:28 AM