Legal Question in Bankruptcy in California

Re: Exposure from debt

If she files and gets a discharge in her bankruptcy case, any community property assets you both have will be protected as long as you are married. If you have any separate property assets, the creditors to which you are jointly liable can go after your separate property assets.

Re: Exposure from debt

Here's the deal. Your seperate property has some exposure. If you have any seperate property. Assuming the community property will be exempted by your wife's bankruptcy you'll not lose that as long as there isn't community property in excess of the exemptions. Even though you're obligated on the community debts most creditors will not bother to come after you. Those few that will, may have to be paid, and/or you'll have to file a BK (either a seven or thirteen) later.

Re: Exposure from debt

Normally unsecured creditors will not come after you...unless the amount you owe to them is very high!!!I have done many cases like yours where husband got out paying nothing. How much do you owe at the most to one creditor and how many creditors are involved?

Re: Exposure from debt

Thanks for your posting. If one of the two of you declares bankruptcy, then the creditor has the right to go after the other person for ONE HALF (the community property portion) of the debt. The only way to 100% get rid of the debt is for BOTH of you to file.

Having said that, will they go after you if your wife files? That's a difficult question to answer, and it truly depends on the following:

1. The amount of the debt; and

2. The policy of the creditor in this situation.

In my experience, many times they don't go after the other spouse. If it is a huge amount of money, however, it might be worth it for them to hire a law firm to go after the debt.

Best of luck, and I hope this helped -- but please feel free to email me directly or call if you have any other questions.