Just hoping to hear some experiences from anyone who filed ch 7 in a community property state but only one spouse filed. My husband just recently filed and we included all debts, including ones only in my name. We have been married ten years and all debts were together. We are surrendering our home as it is underwater. Just curious how it all went from anyone who did this. Were creditors hard to deal with in regards to the non filing spouses debts that were included? What about credit score of non filing spouse? Does it tend to jump up after the discharge? I thought it may since alot of my debt will be discharged including the mortgage in my name only which is 16 payments behind. Just curious. Thanks for any input.
-
-
Your husbands responsibility for your debts will be discharged but yours will not if you do not file. That is my understanding. -
Need to correct this as it relates to a community property state. In a community property state if only one spouse files the other IS protected as it relates to his or her community assets. The filing spouse will obtain a "community" discharge. The non filing spouse can be sued but any judgment can only be executed against sole & separate property, which, presumably there is none. The community discharge protection ends when the community is severed such as divorce, legal separation or death of the filing spouse.Originally posted by malf1204 View Post
Des.Comment
-
Des - an interesting point I heard about just this past week...
Married couple, community property state. Husband filed and discharged a non-consumer Ch 7; wife did not. Wife was notified of an inheritance - a high-value property in the same state - some 23 months after husband's discharge. She is being sued for 100% of the discharged debt (medical) and is terrified that the property inheritance, once it clears probate, will be at risk of lien via judgement. Since the medical debt in question is some $180k, that seems like a significant exposure.
Can a discharged debtor pursue a non-filing spouse who is solely named as the inheritor? I understand the community discharge protects against community assets, but is a sole inheritance assumed to be a community asset the moment it is legally inherited?
P.S. In this case, they have been happily married for 36 years and I do not see that changing. I believe the medical office is grasping at straws here.Comment
-
An inheritance is separate property. So, the wife's creditors can pursue the inherited assets. Her separate property is not protected by her husband's discharge.Originally posted by btbeme View PostLadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
-
Btb,
Lady is correct and this is why it is always better to have both spouses file. Inheritances are sole & separate and would be subject to a judgment as a sole and separate asset. The Code only precludes collecting a discharged community debt from community assets. The Community Discharge does not eliminate any sole & separate exposure for the non-filing spouse (which turns on state law). I always recommend both spouses file unless there already exists a sole & separate asset that we do not want to become an asset of the estate.
Des.Comment
Comment