Legal Question in Bankruptcy in California

I'm separated and need to file for bankruptcy...

I separated from my husband in 1994. We have done nothing about it legally, and have managed to work out child custody, child support, and alimony ourselves. I am living in the house we bought in 1992. The children live with me half- time and are now 12 and 16. I have been putting off the question of settling the ownership of the house, hoping to wait until the youngest child turns 18. I have no savings, and was recently laid off. My credit card debt is becoming unmanageable, and I am seriously considering filing for bankruptcy. I am accepting responsibility for the debt, and have no intention of blaming my ex.

My question is: if I file for bankruptcy, will our informal separation agreement create any problems with regard to keeping the house? We still hold title to it as joint tenants.


Asked on 2/20/02, 1:53 am

2 Answers from Attorneys
Victor Hobbs Victor E. Hobbs

Re: I'm separated and need to file for bankruptcy...

I see things a little differently than Mark. I don't see any reason to list your husband's anything on the income and expense declarations (Schedules) except that you own only a half interest in the property. And that you have (as does your husband) a head of houshold exemption. So unless you've managed to build a lot of equity in the house; and since your husband will not be filing BK with you. There's really not going to be a problem with the house. No bankruptcy trustee wants to try and sell half a home, then write you a big check for your exempt share, and have nothing to show for it. And who the hell buys half a house with a stranger owning the other half.

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Answered on 2/20/02, 9:16 am
Mark Markus Law Office of Mark J. Markus

Re: I'm separated and need to file for bankruptcy...

Your marital status doesn't have anything to do with the house. It is clearly an asset and depending on what equity there is (and of course whether you can afford to maintain the payments) there may or may not be a problem in keeping it. The bigger problem is your monthly income and expenses. You would need to list both yours and your spouse's income and expenses (as well as assets and debts) and depending on what those numbers are, it could affect which chapter you are eligible for, and other considerations. If you desire representation, please visit my webpage for further information and to schedule a free phone consultation.

Regards,

Mark

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Answered on 2/20/02, 2:01 am


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