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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My husbands construction business failed and we had our house

Resolved Question:

My husband's construction business failed and we had our house foreclosed on in California. All business debt and the house loan are in my husband's name. If he files for BK, can the creditors try to collect from me, because we are married? I have a house in Arizona that is in my name only. Do I have to file BK also? If we are divorced prior to his filing BK, am I then immune to further action from his creditors?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Was the business debt and the house loan debt incurred while you were married, or before you were married?
Customer: replied 5 years ago.
Some of the debt was after the marriage. The house loan was put in his name prior to the marriage.
Expert:  cfortunato replied 5 years ago.

Since California is a Community Property state, you can be held liable for all debts incurred during your marriage, even if those debts are in your husband's name only. However, you cannot be held liable for any debts - such as the house loan - that were incurred before you were married.

This means your husband's creditors for the debt that he incurred while you were married - but only for the debt incurred while you were married - can continue try to collect that debt from you if he files a Bankruptcy and you do not.

If you get a divorce, you will no longer be liable for the debt your husband incurred in his name only while you were married.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

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