Legal Question in Family Law in California

Can a marital settlement be protected from a co-existing bankrupcy suit?

I have been going through mediation to dissolve my marriage. Since separation date, June 1998, I have carried the $80,000 community credit card debt due to the fact I am the only signee on the accounts. This has forced me bankrupty as my only option.

The divorce is very close to a settlement in which I will be awarded a significant amount of money. Can this be protected in any way from the bankrupcy trustees. I have not filed for bankrupcy yet.


Asked on 8/30/00, 3:48 pm

2 Answers from Attorneys
Diana Mercer Peace Talks Mediation Services

Re: Can a marital settlement be protected from a co-existing bankrupcy suit?

Definitely see a bankruptcy attorney before proceeding with the settlement. If creditors can claim your settlement monies, you may wish to bargain for something else in the mediation in exchange for giving more of the settlement monies to your spouse. There are strict laws about bankruptcy fraud, however, and your "expected interest" in your community property may need to be disclosed. That's why you want to see a bankruptcy attorney ASAP! Good Luck!

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Answered on 10/03/00, 3:14 pm
Michael Gray Barber & Gray, LLP

Re: Can a marital settlement be protected from a co-existing bankrupcy suit?

I suggest you post this question in the bankruptcy area. As a Family Law attorney my guess is that the money must be used to pay off debt but I may be wrong. Also, there are different kinds of bankruptcy and other ways of dealing with debt.

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Answered on 10/03/00, 4:27 am


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