All the Devils Are Here, Part 2

Community property works differently in bankruptcy. I probably don’t have to tell you that. On the issue of assets and debts, community property is pretty straightforward. All of the community property comes into the estate upon the commencement of a bankruptcy case, even when only one spouse files. §541(a)(2). Every creditor with a right to be paid from the community can file a claim, regardless of which spouse incurred the debt. §101(7). So creditors of the nonfiling spouse are proper claimants in the filing spouse’s bankruptcy case. If the bankruptcy estate contains separate property as well, §726 creates a distribution scheme that segregates community assets from separate property assets in paying community and non community debts. So far pretty straightforward. Right?

The reliance on AI for the formation of a brief with citations without verifying the accuracy constitutes a violation of Rule 9011 and subjects the submitting attorney to monetary and non-monetary sanctions.

I did a little digging hoping to find out how in the world anyone could think that an LLC could file chapter 13. After all, chapter 13 can be filed only by an individual(s). Right? Or No??

Once a Chapter 13 case is completed and the debtor receives a discharge, the trustee cannot seek to reopen the case for the purpose of grabbing an undisclosed, prepetition asset and then converting the case to a Chapter 7 so it could be administered.

Did you know that people sometimes ask for PACER account information and that you can make such a request? We found this helpful information in the Fall 2025 The Southern Scoop, a newsletter published by the U.S. Bankruptcy Court for the Southern District of Georgia.