If he simply "leaves", then any debts that are listed in their names jointly may be pursued by the creditors against either or both of them. However, if one of them actually files for divorce, one aspect of the divorce proceeding would be the division of any liabilities.
As to division of liabilities, the court generally divides things equally. For example, if there is $100,000 in debt, the presumption is that they would each walk away with $50,000 of that debt.
However, this could be divided up differently. Perhaps if one party has more of the assets, such as keeping a marital home, they might keep more of the debt as well to off-set the greater distribution in assets. Another possibility would be for the party with the greater ability to pay to have more of the debt. Yet another possibility, though unusual, would be to attribute the debt to the party that incurred the debt. This might happen where the debt was wasteful, such as one party going to Las Vegas shortly before the filing of the divorce and losing $100,000.
This can be a rather complex situation, please let me know if anything requires clarification.
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Its been many years, now that it dose not show up on his credit any more
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1. so if my mom dosent file bankruptcy again, she has no money to pay his bills, they will take the house?
2.My Dad leaves, dose my mom file bankruptcy on her own?
1. so if my mom doesn't file bankruptcy again, she has no money to pay his bills, they will take the house?
A: California has something called a "homestead exemption." Code Civ. Proc. 704.710; 704.730. It has three tiers: $75,000; $100,000; and $150,000. Depending upon your mother's circumstances, if the equity (fair market value of the home minus total of all loans) is less than or equal to the applicable tier, then the home is absolutely protected, and cannot be sold, whether in or out of bankruptcy. If the equity exceeds the applicable tier amount, then the home can be sold, but the tier amount must be paid to your parents, before any sale proceeds are paid to a creditor.
So, the answer depends heavily on all of the facts and circumstances at the time of proposed sale of the home.
A: If your father refuses to file bankruptcy jointly, then he will be separately stuck with the debts. However, any community property would remain subject to creditor seizure. So, failure to file a joint bankruptcy, or, alternatively, divorcing and separating any community property before filing bankruptcy, would leave any asset, such as the house, potentially exposed to a creditor attack. BotXXXXX XXXXXne: divorcing first and filing bankruptcy afterwards, or filing joint bankruptcy appears to provide the greatest protection.
Note: community property in bankruptcy is a very complex issue. There's no easy way to analyze the outcome, without having all of the financial information available for review. You mom may want to contact a local bankruptcy lawyer before making any decision, so that the entire picture can be considered.
Hope this helps.
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