Legal Question in Bankruptcy in California

Re: Credit card debt of spouse

Technically the credit card companies could come after your bank accounts if the debts were incurred during the marriage. As a practical matter, it is unlikely. I've only seen a credit card company attempt to collect from the spouse whose name wasn't on the card once in the last 15 years. Your annuities should be exempt from garnishment, and as a last resort, you could file a Bankruptcy. I assume you mean your car is worth $3,500 rather than $35,000. If it was worth $35,000, you'd be liable to lose it in a Bankruptcy.

Re: Credit card debt of spouse

Thanks for your posting. To begin with, everything you own, and all your debts during marriage, are presumed community property, meaning you each have a half ownership interest. If your spouse files bankruptcy and you don't, then the credit card companies can't go after her, but can go after you for ONE HALF the balance. I should mention that whose name the accounts are under is generally irrelevant -- if the debts were incurred during marriage, they are community property, absent a court order, a prenuptual agreement, or other special situations.

Do many credit card companies go after the other spouse for 1/2 the amount? Not really, but this depends on the amount involved, and the policy of that particular issuer.

I can tell you this -- the only way to get rid of 100% of the amount is for both spouses to file. Many couples prefer, for credit reasons, to have one spouse without a bankruptcy on their record, so this is a judgment call the two of you must make together. You can have the other spouse file a separate bankruptcy if a particular creditor decides to go after her.

Best of luck, and I hope this helps, but feel free to email me at [email protected], or call my office toll free at 1-877-568-2977. I'm happy to help in any way that I can.