When The Marital Community Doesn’t Get a Bankruptcy Discharge

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. It looks like you are not signed in or registered! This content is only available to members.

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moran_cathy
Head of Moran Law Group

Cathy Moran has headed her own small firm Moran Law Group in Redwood City, California, for nearly 30 years. Family law and tax issues as they play out in bankruptcy are areas of particular interest to Cathy.

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