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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My spouse needs to file for bankruptcy. I have two trust, one

Customer Question

My spouse needs to file for bankruptcy. I have two trust, one in my name in one in my childrens (from a previous marraige) name; how can I keep these from being touched. I have been told we need to divorce and that is the best way to protect what I have. I also have a laundromat and vending machines. Would these be taken? What is the best way for me to protect these? Yes these are my sole and seperate property. I do live in California so...
Help what are my options?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
1) Were the laundromat and vending machines acquired during the marriage? If they were acquired during the marriage, were they acquired with funds you had before the marriage (separate property)?
2) Were your wife's debts incurred before or during the marriage?

Edited by Christina Fortunato, Esq. on 6/7/2010 at 10:00 PM EST
Customer: replied 6 years ago.

I am the wife. The laundromat and vending machines were aquired with seperate property.

 

He needs to file both personal bankruptcy and business bankruptcy. He has a business that was his before the marriage.

 

I need to protect the trusts.

What is the best way to protect these things? Again I was told that I have a chance of losing everything since we are married. Once he files they will come after my assets. Is divorce a way to protect the trusts and my assete? Help?!!!

Expert:  cfortunato replied 6 years ago.
I disagree with whoever told you that your assets can be taken by the bankruptcy court, which can only take community property, which is generally property that was acquired during the marriage.
The trusts, since acquired before the marriage, cannot be touched, nor can the businesses that are separate property (acquired before the marriage, or acquired during the marriage with assets that were acquired before the marriage).
Expert:  cfortunato replied 6 years ago.
I disagree with whoever told you that your assets can be taken by the bankruptcy court, which can only take community property, which is generally property that was acquired during the marriage.
The trusts, since acquired before the marriage, cannot be touched, nor can the businesses that are separate property (acquired before the marriage, or acquired during the marriage with assets that were acquired before the marriage).
Please let me know if you need any additional information.
Thank you.