Do I have to sell assets to my spouse before bankruptcy? 12 Answers as of August 01, 2011If one spouse has a judgment against her on a personal account and is now on Social Security income only, can the other spouse, also on Social Security income only, be made to sell commonly help assets, such as an automobile in order to settle the account? The second spouse already has a judgment of nearly $300,000 against him for a failed business. Would that judgment take priority since it was first in any forced settlement requiring the sale of assets? Bankruptcy has not been filed at this time. Thank you.
Heupel Law | Kevin Heupel
A creditor can force the sale of certain assets even if the assets are jointly held. However, it depends on the type of asset and the asset’s value. I recommend that if the spouse with the debt does not file bankruptcy, then the other spouse should have separate assets so a creditor does not take an asset from both spouses.
Answer Applies to: Colorado
Ashman Law Office | Glen Edward Ashman
Selling assets to your spouse before bankruptcy would generally be considered fraud. In most cases it will get the case dismissed, and result in the Trustee suing the spouse, and may result in loss of an asset that you could have protected. The rest of your question is unclear. Meet with a lawyer to determine what you can do.
Answer Applies to: Georgia
Breckenridge and Walton | Alan D. Walton
DO NOT DO ANYTHING until you talk to a bankruptcy attorney. It sounds like you should be able to discharge this debt in bankruptcy, but you do not want to jeopardize this by manipulating ownership of anything in advance.
Answer Applies to: Michigan
Law Office of Harry L Styron | Harry L Styron
Whether or not you must turn over an automobile to a bankruptcy trustee depends on the equity in the automobile. In California, an automobile with an equity of less than $2,300 cannot be levied upon for a debt. If you file bankruptcy and you do not own a home you can protect up to $21,650 in an automobile, depending on your circumstances. Transfer of assets between spouses is pointless, since in California both the community property and the separate property of both spouses are liable for community debts.
Answer Applies to: California