Legal Question in Bankruptcy in California

Re: Bankruptcy and Divorce

Whether or not you are liable for community debts incurred curing marriage has nothing to do with whether he files bankruptcy; it's a matter of state community property law. His bankruptcy won't legally appear on your separate credit report, of course, but you may be liable for any debts incurred during the marriage.

Re: Bankruptcy and Divorce

Thank you for your posting and inquiry.

In general, there is not a "magic" length of time after divorce where the bankruptcy would or not affect you.

For credit reporting purposes, you typically will have a separate report, indexed primarily under your social security number, even while married.

After your divorce, your divorce decree, or marital settlement agreement, should specifically mention which debts are going to be divided and how.

With that document, none of the debts that are assigned to your husband are attributable to you if you file bankruptcy. Although debts incurred during marriage are community property, and thus 50% yours, the divorce decree or marital settlement agreement will change that.

I hope that this information helps, but if you have other questions, want more information, or feel that you need legal representation, please feel free to email me directly at [email protected]. I�m happy to help in any way that I can.

Re: Bankruptcy and Divorce

Actually, this same issue is currently pending in the appeals courts. If there was an inequitable distribution of the assets and debts and it appears it was for the purpose of defrauding creditors then it is possible the debt will not be discharged. For example, if your husband transferred all or most of the assets to you in your marital settlement but assumed the brunt of the debt, then, depending on the outcome of the appeals court decision it is possible that the debt will not be discharged. However, if there was an equal distribution, then you should have nothing to worry about.