Top 3 Bankruptcy Tips for People Who Are Getting Divorced In California
These are tips about debts for people who are getting a divorce in California.
Agreements To Divide Up Debt Are Not Binding On CreditorsYes, you read that correctly. Agreements between you and your ex-spouse about how to divide up the debt is not binding on your creditors. If you and your ex-spouse come to an agreement to divide up the debt in your divorce, please know that your agreement is not binding on any creditors.
If Your Ex-Spouse Files Bankruptcy You May Be Liable For The Unsecured Community Property DebtIf are in the middle of a divorce and you get notice that your ex-spouse is filing bankruptcy, then please consult with your attorney as you may end up being liable for the unsecured debt that is community property. Your ex-spouse may be able to discharge the unsecured debt, however, for the same reasons as above, the creditors can still go after the spouse that did not file bankruptcy.
A Chapter 7 Trustee Has The Power To Sell Real PropertyIf you and your ex-spouse own a home together and there is sufficient equity then you must consult with a bankruptcy attorney to see if there is any chance that a Chapter 7 Trustee might list the home for sale even if only one of you files for Chapter 7 bankruptcy. It can be very complicated so it is important to consult with an attorney to protect your rights.