QUESTION
How does legal separation pertain to community property laws when only one owner filed for chapter 7?
Asked on Dec 15th, 2016 on Bankruptcy - Colorado
More details to this question:
I was told that legal separation splits the property equity into two. If the property has $140,000 equity, the filer of the bankruptcy would only be allowed $70,000 in equity. The $100,000 homestead would exempt the property to be sold by the trustee. Is my knowledge correct? My concern are filing for chapter 7 and the property being sold.
2 ANSWERS
I would advise you to pay an attorney to review your legal matter with you. I have about 50 to 60 questions, so I couldn't even hazard a "legal guess" at this point.
Answered on Feb 14th, 2017 at 6:41 AM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
First things first: consult a skilled bankruptcy lawyer in your locality. Second, regardless of the legal separation, you are entitled to either the federal or the state homestead exemption (in some states you must choose only the state exemptions). In Wisconsin, each spouse gets a $75,000 homestead exemption. So...if you file separately (and live in Wisconsin) , your equity is entirely exempt. So is hers.
Answered on Feb 14th, 2017 at 6:41 AM