Community Property States

[optimistic1]

Nothing, but the argument lies in the fact that some believe, including creditors, who are both wrong, that unless the non-filing spouse also files, that he is responsible for the husband or wifes debt, even if theyre name wasnt on the loan, and even if they didnt charge a single thing.

Unless the non-filing spouse is including his own debts, which hypothetically you could, because in a comm. property state, you are seen as one entity. Although, if you attempted to discharge those debts, your credit report would show BK on those accounts anyway, but the public record of the filing probably would not, because the name wasn't on the petition. And if you didnt do what I described above, and only had the spouse file on their CC's, then there would be no "HIT", to the non-filing, they would be unaffected.

But, some people on this forum have suggested that Junk Debt Buyers, would try to fight it, but they would have no case whatsoever, and I would blow them off if they even tried.

[Pizza]

What other page are you talking about, because the truth is that under normal circumstances it is the latter, the non-filing spouse is discharged. There are complexities to this rule however, but for simple unsecured credit card debt, you need not worry about a thing.

That is the part that really confuses me. Hypothetically, if the non-filing spouse does not owe any personal debts at the time the filing spouse files, what is there to discharge? What I would really like to know is what the size of the hit would be to a spouse that owes no debt?

[dantan]

As a mortgage broker - I saw on ore than one occasion one spouse refinance their home and file a quit claim to get the other spouse off the loan. The other spouse unknowing of what their ultimate goal was, would agree. They would get divorced and the property would belong to the person whose name was on the refinanced loan.

[Mische]

Community Property & Your Debt

In a community property states, debt acquired during the marriage (as opposed to debt acquired prior to the marriage) is owned jointly by both spouses and is divided upon divorce, annulment or death. Joint ownership is automatically presumed by law, unless there is specific evidence that would point to a contrary conclusion for a particular debt. If you live in a community property state (listed below), both spouses are held accountable for any and all debts acquired during the marriage, even if the account was is listed exclusively in one spouse's name.

Community Property States

The community property states are found most in the West, which has largely been influenced by the Spanish legal tradition from several hundred years ago. The exceptions of this are Louisiana (which comes from a French legal tradition) and Wisconsin (which adopted community property laws much later).

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

Note to Mods: Could we please make this a sticky, as I seem to be cutting and pasting this info much too often....

Thanks,

Wow, thanks for this.

[optimistic1]

What other page are you talking about, because the truth is that under normal circumstances it is the latter, the non-filing spouse is discharged. There are complexities to this rule however, but for simple unsecured credit card debt, you need not worry about a thing.

[arami008]

Reading the nolo book it clearly states that even in community property states (I am in CA), that if one spouse files the other will receive the benefit as well...but in another page it says that either both file or the other one will be held responsible for the debt...???CONFUSED!!!

[optimistic1]

Community Property & Your Debt

In a community property states, debt acquired during the marriage (as opposed to debt acquired prior to the marriage) is owned jointly by both spouses and is divided upon divorce, annulment or death. Joint ownership is automatically presumed by law, unless there is specific evidence that would point to a contrary conclusion for a particular debt. If you live in a community property state (listed below), both spouses are held accountable for any and all debts acquired during the marriage, even if the account was is listed exclusively in one spouse's name.

And thus if one spouse files for a BK and the debt was aquired during the marriage, then a discharge of one spouse relieves the other, thus giving the non-filing spouse a phantom or hypothetical discharge.

[lrprn]

Done

[CindyLou]

Community Property & Your Debt

In a community property states, debt acquired during the marriage (as opposed to debt acquired prior to the marriage) is owned jointly by both spouses and is divided upon divorce, annulment or death. Joint ownership is automatically presumed by law, unless there is specific evidence that would point to a contrary conclusion for a particular debt. If you live in a community property state (listed below), both spouses are held accountable for any and all debts acquired during the marriage, even if the account was is listed exclusively in one spouse's name.

Community Property States

The community property states are found most in the West, which has largely been influenced by the Spanish legal tradition from several hundred years ago. The exceptions of this are Louisiana (which comes from a French legal tradition) and Wisconsin (which adopted community property laws much later).

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

Note to Mods: Could we please make this a sticky, as I seem to be cutting and pasting this info much too often....

Thanks,