How are assets affected with a bankruptcy? 15 Answers as of May 17, 2011

I am exploring the option of filing bankruptcy due to a possible foreclosure, and to avoid a deficiency judgement, on our primary residence which I purchased before we were married. I also have 2 credit cards and another home, which is rented, in my name only. How will bankruptcy affect the assets that are just in my husband's name (ie: truck, boats and quads) which he owns free and clear?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Before you file bankruptcy, you should carefully consider whether or not all of your assets and all of your husband's assets are exempt. If not, nonexempt assets could be sold for the benefit of creditors. My best advice: call me for a free consultation.
Answer Applies to: California
Replied: 5/17/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
If you file BK, the automatic stay will stop the foreclosure proceedings. A deficiency will depend on whether your state allows for them. I would need more information regarding your other assets and liabilities. If you are in WA, we offer free consultations.
Answer Applies to: Washington
Replied: 4/26/2011
Law Offices of Michael T. Krueger
Law Offices of Michael T. Krueger | Michael Krueger
The assets that are held by a spouse may impact the bankruptcy depending on which state you live. In a community property state like California, assets purchased during the life of the marriage are considered community property and are presumed 50/50 ownership between spouses. If you want to keep your home and file a chapter 13 bankruptcy you must be able to pay off your arrears in addition to paying your current monthly payment on your home for the next 3 or 5 years. Your assets will determine your liquidation assessment and will be important to developing your payment plan.
Answer Applies to: California
Replied: 4/26/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You need to see a lawyer. Clients often keep all of their assets in bankruptcy, but I do not have enough information here to fully answer your question.
Answer Applies to: California
Replied: 4/26/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
Going into BK, California law protects up to $23K in assets on top of another $4K in vehicle protection.
Answer Applies to: California
Replied: 4/26/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Each asset that a person owns or has an interest in is handled differently in each Bankruptcy Case. Assets that are owned by a different person, that you do not have your name on, and that are not subject to a debt that you owe, should not be affected. For example, if your husband owns a boat, you do not have your name on the boat registration and it has not been in your name, there is no debt on the boat and only you (not your husband) are filing Bankruptcy, your husband's boat would not be affected in New Hampshire. You should speak with an attorney to determine what affects your Bankruptcy would have in your specific circumstances.
    Answer Applies to: New Hampshire
    Replied: 4/26/2011
    The Law Offices of Benjamin C. Tiller, Esq.
    The Law Offices of Benjamin C. Tiller, Esq. | Benjamin Tiller
    Whether your husband's assets will be affected by your individual bankruptcy is often dependent on state law. In Montana, our Chapter 13 trustee usually considers titled property in the non-filing spouses name only as not being property of the bankruptcy estate (i.e. has no impact on the filing-spouse's bankruptcy or the property). However, in some states you may be have a half interest in the equity in that property, which may ultimately affect the amount of your Chapter 13 plan payment.

    If you file Chapter 13 prior to the foreclosure sale date, then you may be able to put together a plan that allows you to save your home by paying off the arrearages (past due payments). If you live in a deficiency judgment state, you will want to file bankruptcy prior to the lender's obtaining the judgment so it doesn't become a lien on your other home.
    Answer Applies to: Montana
    Replied: 4/26/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If one spouse files bankruptcy, it does not implicate, in any way, the assets belonging wholly and individually to the non-filing spouse.
    Answer Applies to: Indiana
    Replied: 4/25/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Separate property assets of a non-filing spouse are not property of the bankruptcy estate.
    Answer Applies to: California
    Replied: 4/25/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    In a very few states that have some connection with Spanish law, debts while you are married are the debts of both. (That might be those credit cards.) But for most of America, yours are yours and his are his. That means your bankruptcy would not affect your husband's assets.
    Answer Applies to: Virginia
    Replied: 4/25/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The best thing for you is to write down your debts, payments, income and value of assets and go see a lawyer who will then ask you questions and of whom you can ask questions and get the information you need to make an intelligent decision.
    Answer Applies to: California
    Replied: 4/25/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    It probably will not affect him at all. If he is not on the loans, and he owned them before your marriage, he may avoid all of your bankruptcy problems. Talk to an attorney and let them go over your financial situation.
    Answer Applies to: Alabama
    Replied: 4/25/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That depends on whether your husband's assets that you refer to were acquired prior to marriage and, if so, the extent that contributions to their equity occurred during marriage (e.g. paying down a secured loan on the boat, truck, etc.). It also depends on whether you live in a community property state or not. If the assets were acquired prior to marriage and no loans against them, then your bankruptcy shouldn't affect his assets at all. If they were acquired during marriage and you live in a community property state, then whatever exemptions you have available to protect them under applicable state law would apply. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
    Answer Applies to: California
    Replied: 4/25/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    As a California resident, assets of the spouses are community property unless they were owned prior to getting married and no post-petition earnings or other community property has been invested in such property or the property has been legally transmuted into separate property. As such, you need to apply the exemption laws to protect them. If you cannot exempt them fully, you may consider filing a Chapter 13 case instead of a Chapter 7 case. Please contact us for an free initial consultation with a lawyer to discuss this in more detail.
    Answer Applies to: California
    Replied: 4/25/2011
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