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Roger, Attorney
Category: Legal
Satisfied Customers: 31393
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I was wondering, if I file for Bankruptcy how will that affect

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I was wondering, if I file for Bankruptcy how will that affect my spouse and their credit? This past year I've racked up quite a bit in medical bills and thought about the idea of filing for bankruptcy. However, my husband and I are on a car loans together. He's the main signee and I'm the consigner. Technically he doesn't need me on there, I just was placed on there to raise my credit. Would filing for bankruptcy take away our vehicle or any other debts we owe such as our wedding rings, or can we still make payments on those and just wipe the medical bills away?

Roger : Hi - my name is XXXXX XXXXX I'm a litigation attorney. Thanks for your question. I'll be glad to assist.
Roger : In a community property state, yes, your spouse would be affected. Section 541 of the Bankruptcy Code provides that "(a) the commencement of a case under section 301, 302, or 303 of this title creates an estate. Such estate is comprised of all the following property, wherever located and by whomever held:(1) Except as provided in subsections (b) and (c)(2) of this section, all legal or equitable interests of the debtor in property as of the commencement of the case. (2) All interests of the debtor and the debtor's spouse in community property as of the commencement of the case that is-- (A) under the sole, equal, or joint management and control of the debtor; or (B) liable for an allowable claim against the debtor, or for both an allowable claim against the debtor and an allowable claim against the debtor's spouse, to the extent that such interest is so liable."This means that, in community property states, both halves of any non-exempt community property must be included in the estate and will be available to pay community creditors accordingly.
Customer: So If I filed for bankruptcy, would they take away our vehicle? In a previous question, an expert said something along the lines of transferring a year earlier because they look at transfer about a year and a half before..
Roger : Well, the trustee will review transfers for up to a year to determine if they appear fraudulent.
Roger : However, if you owe money on the car, and you want to keep the debt and car, you can reaffirm the debt and you should be able to keep the car.
Customer: Do you happen to know what the non- exempt and exempt properties are?
Roger : I can find you a link.....
Customer: Okay, so for certain debts such as our car and our wedding rings we can reaffirm those and continue making payments.
Roger : Here's a link you are read:
Roger : Yes, you can reaffirm debts as long as you can prove that you can afford it and as long as you are current on the payments.
Customer: Okay. Thank you so much for your help.
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