Will the credit of my husband be affected in bankruptcy? 2 Answers as of September 20, 2010

My husband may be on title to my home but not on the mortgage. Will his assets be affected if I file for bankruptcy?

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Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
The short answer is yes, your husband's credit will be impacted because in California, we are a community property state. As such, all assets of the community and all debts of the community must be reported when you file for bankruptcy. However, you may file as a married individual, meaning that both spouses do not need to file bankruptcy. This can be a benefit to the marriage community because the non-filing spouse's debts will be discharged, however, their credit report will only show the debts having been discharged without showing a bankruptcy filing. This allows the couple to rebuild their credit much sooner in most circumstances after bankruptcy. It depends on all of your circumstances concerning your husband's property and whether any of the property is considered his sole and separate property and if you have any premarital agreements, in writing, that demonstrate this. I hope this answers your question.
Answer Applies to: California
Replied: 9/20/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
That depends on whether the state you live in is a community property state or not. If you live in California, unless your husband's assets were brought with him into the marriage, they are community assets, so they will be affected to the extent you do not have sufficient exemptions to protect them.
Answer Applies to: California
Replied: 9/17/2010
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