Legal Question in Bankruptcy in Texas

Reposession, Judgments & Bankruptcy

In June 2001, my car was repossessed, after a verbal agreement was made between myself and the creditor of a partial payment. This was followed by a lawsuit from the creditor and a judgment was issued against me. The county sherriff�s office has already finished their paperwork and submitted that I have no assets that can be taken for the judgment.

After my car was repossessed and before the judgment was placed against me, I married, and my wife has a home in her maiden name and the home was purchased 2 years prior to us getting involved.

My questions are as follows: If I file for bankruptcy, can they take my wife�s home into consideration? If I don�t file for bankruptcy and we decide to move and sell her home, can they take any profits from the sell of the home and use it to pay off part of the judgment?


Asked on 1/08/03, 1:29 pm

2 Answers from Attorneys
Michael Dover Michael A. Dover, PC

Re: Reposession, Judgments & Bankruptcy

While I'm not sure what you mean by take your wife's home into consideration, the house that your wife purchased before marriage is her separate property. The proceeds from the sale would also be her separate property. The judgment lien would not attach and as long as your wife kept those funds in a separate account, the creditor could not reach them. Once the funds are reinvested into another homestead, the judgment lien and the creditor's claim cannot reach your homestead, even if title is in both of your names.

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Answered on 1/08/03, 2:16 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Reposession, Judgments & Bankruptcy

In my opinion, your wife's house will not be taken into consideration in terms of your bankruptcy filing. It is considered her separate property. I am a strong advocate in filing bankruptcy to remove these old debts. READ MY FIRM'S PHILOSOPHY. However, if you don't have a lot of other debts you could decide not to file. Then, if your "wife's" house is sold the creditor will not be able to access the proceeds. Please feel free to give me a call to discuss your situation in more detail. ph. (214) 979-7330

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Answered on 1/08/03, 3:18 pm


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