Community Property States

[MarkHenry]

Thanks for the information.

[bkf91745]

I would say that if you move into another state, then the state laws apply at the time a lawsuit is filed...

I found some relevant info.

This webpage says that if the debtor has lived in that state for at least two years, the laws that protect a bankruptcy debtor’s property are the laws of the state that they file in:

www(dot)bankruptcylawnetwork(dot)com/waiting-to-file-for-bankruptcy-until-you-move-can-hurt-you/


But this webpage says that the ownership of property depends on where it was acquired, without any mention of its status changing after 2 years:

communityproperty(dot)uslegal(dot)com/laws-governing-community-property/move-from-community-property-to-non-community/

So maybe liability for debts is forever based on where the debts were incurred?

Is there an attorney in the house?

[bkf91745]

Any Updates on Moving In/Out of Community Property States?

How does "community property law" affect a marriage that took place in a non-community property state...

I would say that if you move into another state, then the state laws apply at the time a lawsuit is filed

Did any of you learn any more about this?

My spouse & I are in a community property state (CA), but in 2 months we will move to a non-community property state (OR). And that point we *may* have to file a BK because of a large CC debt. I'm wondering which state's laws will apply.

I'm hoping only the laws of one's current state applies (in my case, OR, the non-comm prop state). All the CC debt is in my name, w/ my spouse only as the AU on one card. So we'd remove my spouse as the AU and I'd file a BK, and, hopefully, my spouse's credit history isn't damaged by my BK.

I'd appreciate any updates from anyone....

p.s. Do you think it matters how soon my spouse is removed as the AU? Do creditors care if the AU was removed just prior to filing a BK?

[optimistic1]

Update,

So it seems as though everything that I have researched is thus far working. All but one of my creditors is still hassling me, its and old chase debt that has been sold to another JDB, then it was sent over to an out of state attorney's office.

I got in touch with my local attorney and I gave them everything that I had on the topic of community discharges, and they formulated a letter basically stating that the marital community has received a discharge and is no longer liable, that their debt has been rendered "uncollectable".

I was elated when I read it when they sent me a copy of it, all my hard work and research finally paying off and having a firm back me on it. I of course have them on retainer if in case they wish to go to court over it, which I highly doubt.

The only caveat would be that my credit remains horrible, I have attempted to use the basis of the discharge as a means of removing the items, they remain on my record, but they are subject to the time limit requirement, and eventually the S.O.L. for my state, so I will just ride it out. I dont need credit anymore, no one does in this world.

[optimistic1]

I would say that if you move into another state, then the state laws apply at the time a lawsuit is filed, so if you default, and move into another state as a married couple, then the state community property law applies, meaning they can sue either one of you for any debt that has either one of your names on it, regardless if it is joint, authorized user, etc.

Which is why I wish I could just move to Texas and need not worry anymore, but I digress.

[LadyInTheRed]

I am pretty sure that whether debt is community property debt depends on the law of the state you lived in when the debt was incurred. Moving to another state shouldn't suddenly make somebody liable for existing debt he was not previously liable for.

[2know]

How does "community property law" affect a marriage that took place in a non-community property state then divorced in a community property state and eventually a spouse still living in non-comm state files for bankruptcy.

let me use my situation as an example: My husband and I got married and spent the 6 years of marriage in Michigan with the last two years of that living together just as friends. He will be moving to Nevada and will file for divorce there. I, on the other hand will stay here in Michigan and will eventually file for BK.

Since he will be relocating to Nevada and filing for divorce there, would that have any effect on him with regards to all my personal debts that were incurred at the time of marriage? He never signed any of the credit card agreements and all of it is mine alone (most of it I used to help a sister and brother who is undergoing medical procedures). Would his relocation and filing of divorce in Nevada make my debts his debts as well?

Did you ever get an answer to your question? I am in a similar situation.

[jensantos16]

How does "community property law" affect a marriage that took place in a non-community property state then divorced in a community property state and eventually a spouse still living in non-comm state files for bankruptcy.

let me use my situation as an example: My husband and I got married and spent the 6 years of marriage in Michigan with the last two years of that living together just as friends. He will be moving to Nevada and will file for divorce there. I, on the other hand will stay here in Michigan and will eventually file for BK.

Since he will be relocating to Nevada and filing for divorce there, would that have any effect on him with regards to all my personal debts that were incurred at the time of marriage? He never signed any of the credit card agreements and all of it is mine alone (most of it I used to help a sister and brother who is undergoing medical procedures). Would his relocation and filing of divorce in Nevada make my debts his debts as well?

[LadyInTheRed]

What about the other side? I'm in MN. A non community property state.

I am an authorized user on his cards.

If he files bk and I don't, can they come after me? If it's a non community state- then it's his debt alone, right?

He should remove you as AU before filing BK. Even though you are not responsible for his debt, his cards probably appear on your credit report.

[lovemybugs10]

Whoohooo, I just checked my credit. They stopped reporting as mine since we've moved to MN.

[lovemybugs10]

I keep reading conflicting info. Thanks!

[SMinGA]

Right... AU is not responsible for repayment.

If he files bk and I don't, can they come after me? If it's a non community state- then it's his debt alone, right?

[lovemybugs10]

What about the other side? I'm in MN. A non community property state.

I am an authorized user on his cards.

If he files bk and I don't, can they come after me? If it's a non community state- then it's his debt alone, right?

[dader]

Wisconsin old debt, new spouse

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 . . .

CindyLou, I hope you can help me ask the right questions when I go to see a lawyer. Here's my situation in a nutshell.

I bought a house in Wisconsin as a single person over ten years ago. Since January of this year I have both re-married AND lost my job. My spouse works and I'm looking, but we cannot afford to keep the house. We'd like to relocate out of state so keeping the house is not a priority. However, I'm looking at a shortsale (-$50k ~ $75k) or foreclosure, and I'm considering bankruptcy to discharge any residual debt.

I have no credit card debt, owe $15k on a car financed by the same bank that holds my mortgage, and a second mortgage for $10k also at the same lender. (a trifecta!)

The house and 2nd are solely in my name, the car (which I'd like to keep) is joint.

My spouse has a BK from 2004 and doesn't want to file again.

(hmmmm... this is getting to be a large nutshell!)

The main thing I'd like to know is, if I file solo BK in 2011 or 2012, what would be the possible impact on my spouse?

Should I default or drag out the foreclosure? Should we refi the car with another lender?

What other questions should I be asking?

Thanks! -da

[jetdsmom]

STUCK in credit score hell due to ex-spouse's bankruptcy

I am in Louisiana, and divorce was final in 2009. Community property has not been settled, and this included a very large mortgage. My ex decided to keep the house, and was court ordered to pay all expenses (mortgage, insurance, upkeep, etc) on the house after our separation. In the two years he was doing so (separation year and year since divorce), he has not paid most months expenses. The house went into foreclosure, went up for sheriff's sale, etc. When the winning bidder went to sign papers, we found out my ex had filed bankruptcy the night before. My family law attorney said I had no recourse until his bankruptcy was settled (a stay on community property because of his bankruptcy). Since his filing, he continues to default on the mortgage, but only by 2 months at a time...never 2 months and the 15 day grace period, which would allow the bank to pursue foreclosure again.

I contacted his bankruptcy trustee to see if there was anyway I could force the sale of the house. (We had several buyers VERY interested, including a cash sale, but my ex refused to sell.) I was told they could not offer legal advice.

Do I need to contact a bankruptcy attorney, or is there someone in this forum that may have suggestions. I feel like I'm stuck in a circle of closed doors, and just can't get answers. My credit is HORRIBLE because of my ex's failure to pay the mortgage over the last few years.

So, concerning community property that is tied up in one ex-spouse's bankruptcy case, how does the other ex-spouse distance themselves from that????