Legal Question in Bankruptcy in California

Re: Property in bankruptcy-urgent response needed

Your husband's bankruptcy is not affected by your separate interest in the property, unless you added his name to the title. Additionally, your husband can take a separate exemption for proceeds from personal injury. Your friend's advice about exemptions is wrong. He should consult with an attorney if he has concerns.

Re: Property in bankruptcy-urgent response needed

If the property is in your name and was before marriage, then he has no interest in it and need not list it on his BK.

Re: Property in bankruptcy-urgent response needed

I would add to the other posts that if you used community property funds to pay down the mortgage loan on the property, then there is some portion of the value of the property that would belong to the bankruptcy estate as sort of a community reimbursement. You may wish to check with a family law attorney to get a more definitive answer on this. I doubt it will amount to much in any event, but technically your husbandwould need to list your his right to reimbursement for the increase in value due to community property payments (i.e. payments from income earned after marriage).

Re: Property in bankruptcy-urgent response needed

I agree with Mark Marcus. Your husband may have a minor interest in the home under California community property law. The way to calculate it is as follows: 1) calculate how much of the principal of the loan has been paid off during your marriage (interest does not count). 2) multiply that figure by 0ne-half. 3) The total is the amount of your husband's community property interest in the property. If that amount is less than $2,000 the trustee probably will not be interested in it. I practice both Family Law and Bankruptcy Law and would be glad to answer any more questions you may have.