Debt collector's right

[PFAKENNY]

What is the name of your state? CA

I am not sure this is right category...

Does creditor has legal right to collect from my wife because of community property state?

1. I have credit card debt (under my name only) for $30,000 and getting harder to pay for even minimum amount...what if I didn't pay for a certain period of time, can they legally pursue the payment from my wife...because we live in CA?

2. If I had mortgage more than the current home value and died, and the lender doesn't accept short sale and force my wife to sell and pay back the balance. Assuming my wife is not on the title at the time I were dead, can they still do that legally...because of CA?

Thank you for your advice in advance!!

 

[Debt Guy]

1. Yes. CA is a community property state --both spouses are liable for debts acquired during the marriage regardless whose name is on the account.

2. Not sure since real estate might be different and probate might change the texture. But in theory, after the sale of the property, the remainder unpaid is an unsecured obligation -- good chance she would be liable.

Talk to a bankruptcy lawyer and see if it make sense for you.

 

[PFAKENNY]

Thank you!

"Acquired during the marriage" means, newly acquired after marriage? or is that including the debt acquired before marriage under my own name and if still have balance?

Thank you, again!!

 

[Chien]

Absent an express, written pre-marital agreement (“prenup”) that assets and liabilities be kept separate post-marriage (and no fudging – i.e. commingling), she becomes jointly liable to the extent of her community property, just as she is jointly entitled to assets. Debts incurred prior to marriage can’t be enforced against the separate property of the non-incurring spouse. Issues such as commingling and “management and control” can become relevant. Consult with counsel on those issues.