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  1. #1
    Join Date
    Apr 2013
    Posts
    2

    Default Husband Filing for Bankruptcy

    My question involves bankruptcy in the state of: Husband filing for bankruptcy. We file our taxes separately. My husband has almost $20,000 of 98% credit card debt. He has one auto loan. Everything is in his name. My name is not on any of it. In fact, we do not share a single financial account together. He is considering filing for bankruptcy this tax season ending tomorrow. I have already filed my taxes and received my refund this year. I filed married but separate. I also have two jobs that are connected to the federal government and require me to have a security clearance. I was told by the person who handles reporting these types of issues at my place of employment that if my husband files for bankruptcy that his creditors will sue me. Obviously, I will then lose my clearances and both of my jobs. Is it true that his creditors can and most likely, will, sue me? We live in California. I understand that California is a community property and liabilities state concerning marriage. I was told that is why his creditors would sue me and win. If it is true that they would sue me, is there anything at all that I can do protect myself from his creditors? Especially since we are not in agreement on this issue.

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Husband Filing for Bankruptcy

    Pay the debt. Sounds like you benefited from his incurring it. Why should marital assets not be used to pay it off?

  3. #3
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Husband Filing for Bankruptcy

    The debts incurred while you were married, even if only in his name, will almost certainly be considered marital debts. You are liable for the debts. They don't even have to wait until he files bankruptcy. As soon as he stops paying them they can come after you. In addition, which you didn't mention, any community assets can be attached (even if only titled in YOUR name). IRS filing status means NOTHING in itself.

    Something also doesn't smell right. Bankruptcy doesn't know tax seasons and isn't going to be completed between now and April 15.

    Guess what....Marriage ESPECIALLY IN CALIFORNIA isn't some sort of living together but partitioned thing where you are isolated from your individual acts. Everything happens together. It would behoove you to get joint counseling on your financial issues.

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Husband Filing for Bankruptcy

    You live in a community property state. All debt (with the exception of a personal guarantee for a corporate/LLC obligation and for real estate) is the responsibility of both husband and wife regardless of who signed for it. If your husband files bk alone he will be filing a bk for himself AND the marital community. The discharge will protect him AND the marital community. What does this mean? While a creditor can sue you and get a judgment against you, it CANNOT collect from any community asset. It can only collect from your sole and separate assets if you have any. The community discharge will protect you so long as there is a marital community.

    To get a better understanding of this concept consult with a local bk attny.

    Des.

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