Legal Question in Bankruptcy in California
debts
Do I have to wait until the assets are settled at trial for a divorce or can I get it started now?
Asked on 12/18/07, 12:47 pm
1 Answer from Attorneys
Brian Whitaker
Lifeline Legal, LLP
Re: debts
If you file bankruptcy, the community property becomes property of the 'bankruptcy estate' and the State family court (being superseded by Federal bankruptcy law) can not distribute those assets until the automatic stay imposed by the bankruptcy filing is lifted.
Filing by yourself before, or even after, a divorce can be problematic due to non-dischargeabilty issues. The smartest course is to file bankruptcy jointly and discharge both of your responsibility for the community debt, and then request the Judgment of Dissolution where you do not have to deal with the debts.
Answered on 12/19/07, 2:36 am
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