As a bankruptcy attorney in Oakland I often encounter the legal issues what assets are regarded marital property in a chapter 7 or chapter 13 bankruptcy.
Today we'll discuss what happens to marital property when a married person files for bankruptcy on an individual basis.
Marital property is that property which a married couple owns together. Whether this property will be included in your bankruptcy estate will depend on (1) your filing status (jointly or alone), and (2) your state's marital property laws. (Your bankruptcy estate is that property which is subject to the reach of the court once your file for bankruptcy.)
Oakland Bankruptcy Lawyer on Community Property
California is a Community Property state. In a community property state, all property which either spouse receives during marriage is considered to be jointly owned by both people (and thus community property). The only items not considered to be community property are gifts or inheritances received separately or property which you brought with you into the marriage.
If you're married and file for bankruptcy in a community property state, all that property which you jointly own will be included in your bankruptcy estate. This holds true despite the fact that you may be filing individually. The only property that won't be considered part of the bankruptcy estate is your spouse's separate property. This is something to be clear on before making the decision to file.
