It isn\u2019t uncommon that an individual encounters a bankruptcy condition. But the fact that in a marriage, when one of the individuals goes bankrupt, he\/ she is wary of the situation and is perplexed as to the consequences of filing bankruptcy alone. A bank attorney will help you clarify your doubts, especially around the impact of filing bankruptcy on the other partner when one spouse want to file one.<\/p>\n
The Bankruptcy estate \u2013 California<\/u><\/strong><\/p>\n Being a community property state, California\u2019s rules cover the assets that are acquired post marriage as the properties that belong to both the partners, irrespective of the title is done on one of their names. Hence whether the bankruptcy filing is done separately or jointly, the bankruptcy estate will cover all of the aforementioned community property of the married couples. Adhering to the laws of the community state of California, a lot of properties become part of the bankruptcy estate and will be subject to the norms of the bankruptcy law even if you file individually. Hence talk to an experienced bankruptcy attorney who can guide you from understanding the criteria for bankruptcy exemptions and how properties can be saved.<\/p>\n It is interesting to note that all separate properties belonging to your spouse (probably acquired prior to marriage) will not be a part of the bankruptcy estate. But it is imperative that those assets are mentioned in the documentation while you file for bankruptcy \u2013 the objective being that the trustee would certainly want to validate your claim that it is only an individual property and not a community property as per the state law.<\/p>\n Dischargeable debts \u2013 California<\/u><\/strong><\/p>\n Filing for bankruptcy separately in California can relieve you of separate debts and you can get a discharge of the same. As a partner, you will also be free from the liability of joint debts since you have filed for bankruptcy. The laws of California community state forbid the creditors from pursuing the community property when one of the partners has filed for bankruptcy. The asset may also get discharged. But if the debtor who has originally filed for bankruptcy separates from his partner or dies, then the non-filing partner will lose this benefit in the long run. The creditors in such a scenario may be interested in the community property since the non-filing partner is now liable for the debt.<\/p>\n Effect of bankruptcy on the non-filing partner<\/strong><\/p>\n What is advisable in the state of California?<\/strong><\/p>\n Considering the state of California, many assess the factors and consider the options of either filing jointly or separately for bankruptcy. Here\u2019s a quick tip for them \u2013<\/p>\n Perform a detailed analysis with some professionals in this field. Recovery Law Group<\/a> has a great team of attorneys who will analyze your conditions and recommend on the course of action needed in your bankruptcy situation or of your partner\u2019s. They operate in Los Angeles, California, and Dallas, Texas.<\/p>\n \n <\/p> \n
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