Legal Question in Bankruptcy in Virginia

single bankruptcy joint asset

My husband put my name on the title to our home that he owned prior to marrying me. I am now considering personal bankruptcy. I believe the title is joint severalty(?). If there is equity (maybe $100K) and I file chapter 7, can they compel him to sell the house for the equity? this is my gravest concern and he is quite angry with me. The debts are in my name only. Also, we have our finances seperate, however, his income at face value would disqualify me from filing a chap 7. How heavily is his income weighted in determining my eligibility. He was unaware of this debt until I disclosed it today. He is not happy. If this can not be resolved with minimum impact on him, I'm afraid of the future of our marriage. His credit rating is very important for his business. This is weighing very heavily on me. Thank you.


Asked on 9/12/07, 1:13 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: single bankruptcy joint asset

If the title is as Joint Tenants or Tenants in Common, your interest in the house would be subject to sale in a Chapter 7 to satisfy your debts, and would be counted in what you would have to pay in a Chap. 13. If title is as tenants by the entireties, it would not be subject to claims as to just you, and to the extent the unsecured debts are just yours, it would be beyond the reach of the trustee. You should have a lawyer examine your deed and your other circumstances and advise you if bankruptcy is a good option, and which chapter. As for eligibility for a Chapter 7, total household income is included in the initial means test calculation (whether you are above or below the state median income), but if you are above the median and this subject to further means testing, the income of a non-filing spouse not devoted to family and household expenses is backed out to determine if you pass the means test. If you are over the median, looking at income at "face value" is only the beginning of the test.

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Answered on 9/12/07, 9:09 am


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