i am filing chapter 7, my wife is not filing

[mr3335]

What is the name of your state? california

hello, i am filing chapter 7 ($65,000 in CK debt) after i have been out of work for two years. both medical and professional reasons. my wife has a job and she pays for all expenses right now. maxes out her paycheck. i make no income at the moment and she's not filing for bankruptcy.

we bought a house in 2001 in Los Angeles. since i couldn't afford the payments soon after, my wife took on the mortgage and we decided to put the deed of trust under her name back in 2002. it's her sole property now. the house was refinanced several times because it needed work (it was an old house) and now there aproximately $100,000 of equity in it (minus expenses which i have been told are 8% - sale and closing costs. i have also been told bankruptcy laws allows for $75,000 of equity.)

my wife is very concern about loosing the property and it's putting a strain in our relationship. is there any risk for her to loose the property even though she's not filing bankruptcy? can one withdraw from chapter 7 once it's been filed? i am very worried now and would like to get a second opinion about this issue.

thank you.

 

[tijerin]

California is a community property state. All debts incurred during the marriage, whether applied for or held in only one party's name or not, are considered joint debts (ie. you applied for and got a credit card. she never applied for it with you. it is not a "joint" account. she is still liable) If YOU file and SHE does not, they'll just go after HER, as the debts are hers, as much as they are yours. They'd just sue HER and go after her assets (which includes the house (which is community property regardless of whether it's in your name, or hers).

I believe your home is protected in California (exempt assets) but I know you can file a "Homestead" document with your County Clerk which will protect it further. Although, I'm not positive what types of protection is garnishes, I know that MANY people do it. That's what i'd have her do, FIRST.

Then, seeing as you're married, you should decide between yourselves whether to file TOGETHER, or not at all. Seeing as only one of you filing won't erase the debt from YOUR lives. (ie. it may release YOU from responsibility, but not HER. If you stay married, it's still YOUR problem)

By the way, I'm not an attorney. These statements are based on what I believe to be true from past conversations WITH attorneys.